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RailTel Corp spurts after Goldman Sachs, Nippon MF acquire stake

Capital Market 

RailTel Corporation of India surged 18.49% to Rs 143.85 after Goldman Sachs India Fund bought 37,09,685 shares (or 1.15% stake) of the company at an average price of Rs 113.57 per share on Friday (26 February 2021).

On the same day, Nippon India Mutual Fund - Multi Cap Fund bought 20 lakh shares (or 0.62% stake) at an average price of Rs 116.13 per share while Nippon India Mutual Fund bought 50 lakh shares (or 1.55% stake) at an average price of Rs 109 apiece.

On Saturday (27 February 2021), RailTel Corporation informed that that it had been assigned works of Rs. 105.82 crore by the Ministry of Railways. The tenure for completion of the said works is 18 months.

RailTel Corporation of India, a public sector undertaking under the Ministry of Railways (MoR), Government of India, is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in the country.

The public sector undertaking posted a net profit of Rs 45.58 crore and total sales of Rs 537.40 crore in six month ended September 2020.

Shares of RailTel Corporation made their debut on the bourse on Friday (26 February 2021). The stock was listed at Rs 104.60, a premium of 11.28% to the initial public offer (IPO) price. It gained 16.06% to close at Rs 121.40 apeice.

The IPO of RailTel Corporation of India was subscribed 42.39 times. The issue opened for bidding on 16 February 2021 and closed on 18 February 2021. The price band for the IPO was set at Rs 93-94 per share.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, March 01 2021. 11:05 IST