RailTel IPO opens for subscription on 16th February! Apply online in these 4 simple steps - check listing gains likely, lot size, issue price

RailTel IPO (Initial Public Offer) is going to open for subscription from 16th February 2021 and it will remain available for bidding till 18th February 2021. The issue price or the RailTel share price is fixed at Rs 93 to Rs 94 and the Mini Ratna company's issue will be listed at both BSE and NSE. Experts are recommending 'SUBSCRIBE' to the RailTel IPO and hence those who are interested in bidding for the RailTel IPO need to know how they can apply online for the issue.

Zee Business Managing Editor Anil Singhvi said that Investors should invest in RailTel IPO. Investors who want to apply for long term can apply and investors can also apply for small listing gains, the Market Guru added. Singhvi cautioned investors not to expect money to be doubled or tripled on RailTel IPO post-listing. He said not to expect strong returns from RailTel IPO listing itself. He said 20 to 25% listing gains possible on RailTel IPO. 

With a reasonable RailTel IPO price band and strong financials, stock market investors may get this offer interesting and try to apply for the RailTel IPO. Here are the two ways through which they can apply for RailTel IPO — First ASBA (Application Supported by Blocked Amount) and UPI Gateway.

1] ASBA: This is one of the most convenient ways to apply for the IPO. In this process, your bank will register and pay the cost for the RailTel IPO. Till the RailTel IPO allotment, your bank will block your money in your account. If the IPO is allotted to you, the money will be instantly deducted from your bank account and in case, the bid becomes unsuccessful, then the amount blocked in your account will be unblocked.

There are more than 68 bank account that can help you while applying for the RailTel IPO through ASBA and some of these banks are State Bank of India (SBI), Canara Bank, ICICI Bank, Allahabad Bank, Bank of India, HDFC Bank, Punjab National Bank (PNB), Axis Bank and many more. Full list of banks and their account for ASBA is available on the official SEBI website — sebi.gov.in.

One can exercise the ASBA process both online and offline, depending upon the convenience of the RailTel IPO bidder.

2] UPI process; One can apply for the RailTel IPO online exercising the UPI process by following four simple steps. An investor interested in applying online for the RailTel IPO or any other IPO can apply with its UPI ID as payment gateway on Indian Stock Exchanges — NSE and BSE.

Here are the four simple steps to apply online for the RailTel IPO:

1] Download Google Pay from the playstore in your Android or Smartphone. Link your registered bank account with the same;

2] Once you link your UPI, your ID will get generated with your bank name automatically added in the end;

3] Apply for the RailTel IPO either from your brokers platform or from your mobile platform, enter your UPI ID in the IPO application form and click at the 'Submit' button; and

4] You will get a fund block request. Approve it so that the fund gets blocked in your account for the IPO.

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RailTel IPO Price

The RailTel IPO lot size is 155 RailTel shares. A retail investor can apply for a minimum of 1 lot while maximum up to 13 lots. This means, a retail investor can bid for the RailTel IPO with a minimum cash flow of Rs 14,570 and maximum investment in the RailTel IPO is capped at 2,015 shares or Rs 189,410.  

RailTel IPO size, OFS

The RailTel IPO issue size is 87,153,369 equity shares of Rs 10 face value. Means the aggregate amount that the promoters of the company want to generate is Rs 819.24 crore.

RailTel IPO will be listed at both NSE and BSE.

About RailTel Company

RailTel Corporation is a public sector company, wholly owned by the Government of India (GOI) and administered by the Ministry of Railways. It is an Information and Communication Technology (ICT) infrastructure provider company. It was established in 2000 with the key objective to modernize telecom infrastructure. Currently, it is one of the largest telecom infrastructure providers in India.