Rama Telecom IPO receives 10.86 times subscription applications on Day 1

New Delhi, June 25: Rama Telecom’s Initial Public Offering (IPO), which opened for subscription today, has received a robust response from investors, achieving an impressive 10.86 times subscription by the first half of the day.

Retail Participation Leads The Charge

According to NSE data updated at 10:52 AM:

• The IPO received a total of 4.01 crore bids for 36.96 lakh shares, against the issue size of 36.96 lakh shares.
• Retail Individual Investors (RIIs) led the charge, contributing 1.02 lakh shares through 51 applications.
• • Of these, 88,000 shares were bid at the cut-off price through 44 applications.
  • The remaining 14,000 shares were acquired via price bids from seven applicants.

Lack of Institutional Bids So Far

As of the current update, no bids have been recorded from Qualified Institutional Buyers (QIBs) or Non-Institutional Investors (NIIs), which include corporates and high-net-worth individuals. However, it is common for institutional bids to come in during the later stages of an IPO, often on the second or third day, after anchor investor allotments or as more detailed market analyses become available. Given the strong retail interest, institutional participation is highly anticipated.

Pricing and Listing

• The IPO is priced at Rs 65-68 per share.
• At the upper price band, the issue size stands at Rs 25.13 crore.
• Shares will be listed on the NSE Emerge platform after the issue.

Purpose of the Proceeds and Company Focus

Rama Telecom plans to strategically deploy the net proceeds from the IPO towards several key areas:

• Capital expenditure: To expand its operational capabilities and infrastructure.
• Working capital needs: To support day-to-day operations and growth initiatives.
• General corporate purposes: For various strategic and operational requirements.

The company also aims to significantly enhance its project execution capabilities and invest in advanced technologies like Kavach railway systems, FTTH, and SCADA networks.

What’s Next For Rama Telecom? 

Rama Telecom’s IPO received an enthusiastic response on Day 1, with subscriptions reaching 10.86 times, driven mainly by retail investors. While QIBs and NIIs are yet to participate, their bids often come later in the window. The IPO proceeds will be used for capex, working capital, and business expansion into areas like FTTH and railway tech. The issue remains open for subscription till June 27.

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