RailTel Corporation makes a stellar debut despite bloodbath on Dalal Street, climbs 29% to close at Rs 121
RailTel Corporation traded with volumes of more than 12.81 crore shares on the NSE and 1.59 crore shares on the BSE.
February 26, 2021 / 07:16 PM IST
RailTel Corporation of India shares made a strong debut on February 26 - the day when benchmark indices crashed around 4 percent each. The stock jumped 29.15 percent to close at Rs 121.40 on the BSE after hitting an intraday high of Rs 125.50, whereas the S&P BSE Sensex itself tumbled 1,939 points on Friday, the biggest single-day fall since May 4, 2020.
The upside from its opening price of Rs 104.60, which was also its day's low, was 16.06 percent.
On the National Stock Exchange (NSE), the stock closed with gains of 29.10 percent at Rs 121.35 after hitting an intraday high of Rs 127.85 and opening at Rs 109.
It traded with volumes of more than 12.81 crore shares on the NSE and 1.59 crore shares on the BSE.
RailTel Corporation jumps 33% to Rs 125.5 despite carnage in market: What should investors do?
"Currently, stock is trading at 26 PE on FY20 trailing basis. The company has a diversified portfolio of services and solutions. It is a key partner to the Indian Railways in digital transformation. We are positive on the long-term prospects of the company, so we advise long term investors to hold the stock," Keshav Lahoti, Associate Equity Analyst at Angel Broking told Moneycontrol.
State-owned RailTel Corporation of India mopped up around Rs 819 crore through public issue. It was a complete offer for sale by the government.
RailTel is information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. It provides a variety of services to the Indian Railways and has implemented MPLS data network for integrated payroll and accounting system, unreserved ticketing system, freight operations information system and coaching operations information systems.
It is also working with the Indian Railways to transform railway stations into digital hubs by providing public Wi-Fi at railway stations across India.