The offer for sale from RailTel received overwhelming support and was oversubscribed 42.42 times. The offer for sale of 871.53 lac shares was in a price band of Rs 93-94. The issue had opened on Tuesday the 16th of February and closed on Thursday the 18th of February.
Earlier, the company had allotted 2,59,57,446 shares to 13 anchor investors comprising of 23 entities. The highest allocation of 37,23,100 shares or 14.34% was made to HDFC Life Insurance. This was followed by 4 entities which were allotted an identical 31,91,295 equity shares or 12.29% of the anchor allocation. They are Nippon Life, Goldman Sachs, HDFC Mutual Fund and ICICI Prudential Mutual Fund. This effectively means that the top five anchors have been allotted 63.5% of the anchor portion.
Railtel Subscription
| Bucket Size | Shares Applied for | Times Oversubscribed | |
| QIB | 17330674 | 1131450400 | 65.29 |
| HNI | 12998006 | 952118190 | 73.25 |
| Retail | 30328680 | 508997680 | 16.78 |
| Employee | 500000 | 1677100 | 3.35 |
| Total | 61157360 | 2594243370 | 42.42 |
The issue received excellent response and was very well subscribed across categories. QIB portion was subscribed 65.29 times, HNI portion 73.25 times, Retail portion 16.28 times and Employee portion 3.35 times. There were 23.79 lac applications and on the basis of lots the retail portion was subscribed 12.16 times.
This issue on basis of retail subscription has seen the best response ever in all railway PSU’s so far. The railway PSU pack consists of IRCTC, IRFC, RITES, RailTel, RVNL and Ircon.
