Royal Mail 8216 was valued at 5bn 8217

The government has again come under fire for selling Royal Mail at a low price.

Investment banks valued the organisation at £5 billion this summer, but it floated on the stock market earlier in the month at a valuation of around £3.3 billion.

Despite shares having only been available for open trading for a few days, stocks in Royal Mail have already exceeded the 500p mark that would value the firm at £5 billion.

According to a report by the Financial Times, neither of the two investment banks to have valued Royal Mail at £5 billion were involved in the sale of the institution.

The Labour Party previously criticised the government for selling shares in Royal Mail for too low a price, but business secretary Vince Cable has defended the decision.

Shares in Royal Mail have continued to rise in value this morning (October 21st). At 08:33 BST today, stocks in the firm were trading 4.28 per cent higher than at the start of the session.

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