InvestorQ : How has been the IPO subscription scene for the two IPOs of RailTel and Nureca which are slated to close during this week?
diksha shah made post

How has been the IPO subscription scene for the two IPOs of RailTel and Nureca which are slated to close during this week?

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sara Kunju answered.
1 week ago
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Incidentally, both the IPOs mentioned by you have got a very good response in the market so far with robust demand and strong interest coming from institutional and retail investors. Interestingly, both the IPOs of the week, viz. Nureca and RailTel have been oversubscribed well before the closure date.

Let us look at the status of the subscription ahead of the closure of these IPOs. As of Tuesday close on 16 February, the Rs.820-crore IPO RailTel Corporation was subscribed 2.6 times. What is more interesting is that the retail portion of up to Rs.2 lakh investments has got subscribed 5 times. Of course, QIP investments come on the last date, normally.

The IPO of RailTel has been priced in the band of Rs.93-94 and is likely to proffer RailTel an opening market cap of Rs.3,000 crore. That is quite small for a company that handles the entire telecom infrastructure of the Indian Railways. In addition, it must be remembered that RailTel is a profit making company with net margins of 13%.

The other IPO of Nureca is much smaller in size at just about Rs.100 crore. This issue is much smaller and the anchor investor interest had seen robust interest from the qualified institutional players due to the small size of the issue. The Nureca IPO was already subscribed 15 times as of Tuesday with solid interest from institutions and retail. 

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