Defying the sell-off in the markets today, RailTel got listed on the BSE at Rs.104.60 and on the NSE at Rs.109 v/s IPO price of Rs.94. On the BSE it went on to Rs.123.70 and is now trading at Rs.117-levels.

The IPO, where the Govt of India sod 27.16% stake was subscribed 42 times.

The retail individual investors segment was subscribed over 16 times, qualified institutional buyers (QIBs) category 65.14 times and HNIs by 73.25 times.

In our New Issue Analysis, we had concluded, “We do not recommend subscribing to the IPO as PE of 19x for 10% RoE business, coupled with PSU tag make the IPO unattractive.”