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Royal Mail’s share price has long been a point of interest for UK investors, particularly those who took part in the company’s 2013 privatisation.
With the current market offering and takeover developments in motion, many are curious about the value of their original holdings—especially the widely allocated 227 shares.
This blog explores the present worth of those shares, the implications of the proposed acquisition, and the broader performance of Royal Mail on the London Stock Exchange.
What Is the Current Royal Mail Share Price on the London Stock Exchange?
As of 9th April 2025, Royal Mail shares, now trading under International Distributions Services plc (IDS), are priced at 365.20 pence.
The price recorded a slight dip of 0.05%, equivalent to a 0.20p drop for the day. Despite the marginal decline, the share value remains relatively stable amidst ongoing acquisition discussions.
The bid and ask spread stands at 365.20p (bid) and 365.80p (ask), showing a tight market with active trading. The day’s activity included large volume trades, such as a 1.3 million share transaction at 16:35.
Daily fluctuations remain minor, but volume suggests sustained investor interest, especially as the market awaits confirmation of the proposed takeover.
Investors can track the Royal Mail share price in real time on financial platforms like:
- The London Stock Exchange (LSE) official site
- Yahoo Finance
- Google Finance
- Trading platforms such as AJ Bell, Hargreaves Lansdown, and eToro
These platforms offer tools to monitor share price movements, including intraday price changes, volume analysis, and technical indicators like the moving average and momentum index.
How Did the Royal Mail Share Price Perform Since Privatisation?
Royal Mail was privatised in October 2013, with shares offered to the public at an initial price of 330p per share.
The response from retail investors was immense — over 700,000 members of the public applied for shares. Due to this overwhelming demand, most retail applicants were allocated a maximum of 227 shares each.
At the time, the cost of 227 shares was £749.10. In the years following the IPO, the Royal Mail share price has experienced several highs and lows, influenced by:
- Labour disputes and strikes
- Parcel delivery growth during the pandemic
- Competition from private logistics firms
- Regulatory scrutiny over universal service obligations
Despite facing operational challenges, the company has maintained a steady position in the UK delivery and postal market, and share prices have gradually recovered from earlier downturns.
How Much Are 227 Royal Mail Shares Worth?
With the share price currently sitting at 365.20p, let’s calculate the value of an investor’s 227 shares:
| Metric | Value |
| Number of Shares | 227 |
| Current Price Per Share (365.20p) | £3.652 |
| Current Total Value | £829.00 (approx.) |
| Original Purchase Price (330p) | £749.10 |
| Estimated Profit | £79.90 |
If the acquisition offer by Czech billionaire Daniel Kretinsky is accepted, shareholders could receive 370p per share, pushing the total value of 227 shares to £839.90, a £90.80 gain from the initial investment.
This modest gain may not seem life-changing, but it’s a decent return given the share’s journey over the past 12 years.
What Impact Will the Royal Mail Takeover Have on Share Value?
The biggest development currently influencing the IDS share price is the acquisition proposal by Czech billionaire Daniel Kretinsky.
His offer stands at 370p per share, valuing the company at £3.6 billion. If the deal is approved by regulators and shareholders, Royal Mail would become part of Kretinsky’s growing European logistics empire.
For retail investors:
- The offer represents a 12% premium over the original IPO price.
- Investors with 227 shares stand to receive £839.90, assuming they still hold the shares.
For employees:
- Many were given 613 shares during the 2013 privatisation.
- At 370p, these would be valued at £2,268.
The deal, if approved, could also result in strategic restructuring. Analysts expect potential changes such as:
- Increased automation in sorting and delivery operations
- Improved international parcel logistics
- Cost-cutting measures to improve profitability
These shifts could impact long-term investors and employees alike, particularly if the company moves away from certain traditional operations or roles.
How Can Investors Track the Royal Mail Share Price Live?
Keeping up with the Royal Mail (IDS) share price can be done through multiple reliable sources. The most accurate and timely data can be accessed via:
- London Stock Exchange (LSE)
- International Distributions Services’ investor relations page
- Online trading platforms
- Market tracking tools like Google Finance and Yahoo Finance
These platforms offer:
- Intraday price updates and historical data
- Volume metrics and market depth
- Technical analysis tools such as the 50-day and 200-day moving average
- Momentum and Relative Strength Index (RSI) indicators
Investors can set alerts on these platforms to monitor key price levels or receive updates when market-moving news affects the stock.
Is Royal Mail Still a Good Investment Opportunity?
While Royal Mail has offered modest returns since privatisation, its potential as an investment is closely tied to the outcome of the takeover deal and future market conditions.
Considerations for potential or current investors include:
- Historical performance: Moderate capital gains with periods of volatility
- Dividends: Inconsistent but previously appealing to income-focused investors
- Operational stability: Dependent on future labour agreements and automation initiatives
- Market competition: Increasing presence of courier services like DPD, Evri, and Amazon Logistics
Post-acquisition, new ownership could stabilise the business or introduce efficiencies. However, it may also result in reduced transparency for public investors if the company is taken private.
What Is the Forecast for the Royal Mail Share Price?
Market forecasts for Royal Mail are currently speculative, hinging largely on the progress and approval of Kretinsky’s acquisition offer. If the deal finalises, the share price is expected to stabilise at or around 370p.
Analyst considerations include:
- Finalisation of the acquisition deal in 2025
- Regulatory and political approval of foreign ownership of a key postal service
- Future profitability under new management
- Transformation and automation plans
In the absence of the takeover, shares may continue fluctuating based on operational performance, market sentiment, and macroeconomic factors such as inflation and parcel delivery demand.
How Can Shareholders Sell Their Royal Mail Shares?
Investors looking to sell their IDS shares can do so through a stockbroker, trading platform, or financial adviser. The process is typically straightforward:
- Log in to your platform and navigate to your holdings
- Choose to sell either via a market order (immediate sale) or limit order (set a target price)
- Confirm and execute the trade
For shareholders who hold physical share certificates, a process involving a broker or registrar transfer may be required.
In the case of the takeover:
- If the acquisition proceeds, shareholders may not need to sell manually
- Shares would likely be purchased automatically at 370p, and proceeds transferred to shareholders
It’s also essential to consider capital gains tax. For the 2024/25 tax year, individuals have a CGT allowance of £6,000. Gains above this threshold from the sale of shares may be subject to tax, depending on personal tax brackets.
What Are the Lessons for Retail Investors from the Royal Mail IPO?
The 2013 Royal Mail IPO remains a significant moment in recent UK investment history, particularly for retail investors.
With over 700,000 individuals participating, it marked one of the largest public engagements in a privatisation scheme.
More than a decade later, it offers several important lessons for those looking to navigate equity markets with more insight and caution.
The Hype Doesn’t Always Translate Into Long-Term Value
When Royal Mail was floated on the London Stock Exchange at 330p per share, the media response and public enthusiasm were intense. Many investors saw it as an easy opportunity for short-term gains.
While the share price initially surged beyond 450p, it soon became clear that sustained growth was not guaranteed.
Over the following years, share price movements were influenced by industrial disputes, changing parcel volumes, regulatory oversight, and broader market conditions.
The initial optimism did not match the reality of long-term share performance. Retail investors learned that early excitement around an IPO does not necessarily lead to significant long-term returns.
Diversification Should Be a Priority
Many retail investors who participated in the Royal Mail IPO focused solely on that one investment, especially those new to the stock market.
While some earned modest returns, the lesson here is clear. Relying on a single company’s success can expose investors to unnecessary risks.
Building a diversified portfolio that includes companies across different sectors and asset classes helps reduce exposure to individual stock volatility.
Had investors spread their capital across multiple companies in different industries, they might have achieved more balanced and consistent performance.
Long-Term Holding Can Deliver Results
For investors who held onto their 227 shares from the time of the IPO, the returns have been steady, though not spectacular.
With the current offer of 370p per share through the proposed acquisition, those long-term holders are set to make a modest profit of just over £90 on their original investment.
This outcome supports a broader principle in investing. Patience and long-term perspective often yield better results than short-term trading based on speculation.
While Royal Mail did not produce dramatic capital growth, it did offer dividends in several years, contributing to the overall return.
Corporate Activity Plays a Key Role
The most notable boost in Royal Mail’s valuation has come not from its operational performance, but from the proposed acquisition by Daniel Kretinsky.
For retail investors, this highlights the importance of tracking corporate developments such as takeovers, strategic partnerships, or management changes.
These events can significantly influence share prices and provide opportunities to exit at a premium. Staying informed about internal and external developments is crucial to making timely and informed investment decisions.
A Practical Case Study for Retail Investors
The Royal Mail IPO serves as a useful case study in real-world investing. It demonstrates the value of diversification, the benefits of a long-term approach, and the impact of corporate events on shareholder returns.
Investors who reflect on these lessons are better equipped to evaluate future IPOs or make strategic decisions within their existing portfolios.
Conclusion
For those who acquired 227 Royal Mail shares during the 2013 IPO, recent developments offer a moment of reflection and potential financial gain.
With the current trading price nearing 365p and the proposed buyout at 370p per share, early investors are positioned for a modest return.
Beyond individual valuation, Royal Mail’s evolving ownership and operational strategies will play a significant role in shaping the company’s future and the outcomes for both retail and institutional shareholders.
FAQs
What was the original price of Royal Mail shares in 2013?
The shares were originally priced at 330p during the privatisation IPO in 2013.
Who is Daniel Kretinsky and what is his plan for Royal Mail?
Daniel Kretinsky is a Czech billionaire offering to acquire IDS for £3.6 billion, intending to modernise operations and potentially expand across Europe.
How can I check the live Royal Mail share price?
You can use platforms such as LSE.co.uk, Yahoo Finance, or your trading app to monitor real-time updates.
Is the Royal Mail takeover confirmed?
As of now, the deal is not yet finalised, pending regulatory and shareholder approval.
Will I automatically receive 370p if I own shares?
If the deal completes and you still hold shares, you’ll likely receive 370p per share as a cash buyout.
Are dividends still being paid by Royal Mail?
Dividend payouts have fluctuated. Investors should check the latest announcements on the IDS investor portal.
How did Royal Mail employees benefit from privatisation?
They received 613 shares each, now potentially worth £2,268 under the Kretinsky offer.