RailTel IPO is all set to hit the Dalal street on 16 February 2021. The company aims for an issue size of ₹819.24 Crore throught this IPO.
Also read: IPO List 2021: a complete list of IPOs in 2021
RailTel Corporation of India Limited
A Mini Ratna (Category-I) Public Sector Enterprise – RailTel is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. The company was incorporated on 26 September 2000 with the aim of modernizing the existing telecom system for train control, operation, and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks. As of 30 June 2020, its optic fiber network covering over 55,000 route kilometers and 5,677 railway stations across towns and cities in India.
The company operates data centers in Gurugram, Haryana, and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways. In addition, it undertakes various ICT projects for the Indian Railways, central government, and state governments, including various train control system projects for Indian Railways.
Key Facts about RailTel Corporation
- One of the largest neutral telecom infrastructure providers in India with PAN India optic fiber network.
- Diversified Range of services i.e. Telecom Network, Telecom Infrastructure, Data Center and Hosting, and Projects.
- Operates an optic fiber network covering 59,098 route Kms and 5,929 railway stations in India.
- RailTel Corporation has an exclusive right of way along 67,415 Kms connecting 7,321 railway stations.
- Center Network Operation Center at New Delhi and 4 NOCs at Mumbai, Delhi, Kolkata, and Secunderabad.
- It has 305,746 retail customers and 5,023 Access network providers (ANPs) to deliver the last mile connectivity.
Objective of the Issue
- To achieve the benefits of equity share listing on the stock exchanges.
- To carry out the disinvestment plan.
Basic details about the company
| Full name | RailTel Corporation of India Limited |
| Sector | Telecom |
| Industry | Telecommunication-Service provider |
| Company Website | www.railtelindia.com |
Dates to remember
| IPO Opening date | 16 February 2021 |
| IPO Closing date | 18 February 2021 |
| Basis of Allotment date | 23 February 2021 |
| Initiation of Refunds | 24 February 2021 |
| Credit to Demat Account | 25 February 2021 |
| Listing Date | 26 February 2021 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹819.24 crores |
| Number of shares offered | 87,153,369 Shares |
| Face value | ₹10 per equity share |
| Price band | ₹93 to ₹94 per equity share |
| Retail portion | 35% |
| Lot size | 155 Nos |
| Minimum application | 1 lot – 155 shares |
| Maximum application | 13 lot – 2015 shares |
| Minimum application amount | ₹14,570 |
| maximum application amount | ₹189,410 |
| Listing Exchange | BSE, NSE |
Financial summary
| RailTel’s financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 1,021.2 | 1,038.3 | 1,166.0 | 553.8 |
| Expenses | 835.1 | 820.6 | 931.9 | 491.6 |
| Net income | 134.0 | 135.4 | 141.1 | 45.6 |
| Net margin (%) | 13.1 | 13.0 | 12.1 | 8.2 |
Valuation of RailTel (as of FY2020)
| Earnings Per Share (EPS) | ₹4.40 |
| Price/Earnings (PE ratio) | 21.13 – 21.36 |
| Return on Net Worth (RONW) | 10.3% |
| Net Asset Value (NAV) | ₹42.67 per share |
Company Promoters
- The President of India, acting through the Ministry of Railways is the promoter of the company.
RailTel IPO IPO Lead Managers
- SBI Capital Markets Limited
- ICICI Securities Limited
- IDBI Capital Market Services Limited
Registrar of RailTel IPO
KFin Technologies Private Limited
Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
Email: einward.ris@kfintech.com
Website: www.kfintech.com
RailTel Contact Details
RailTel Corporation of India Limited
Plate – A, 6th Floor,
Office Block, Tower-2,
East Kidwai Nagar, South Delhi,
New Delhi 110023
Phone: +91 11 2290 0600
Email: cs@railtelindia.com
Website: www.railtelindia.com
RailTel IPO Subscription Status
| Category | Day 1 | Day 2 | Day 3 |
| QIB | 0.00x | 2.96x | 65.14x |
| NII | 0.75x | 2.63x | 73.25x |
| RII | 4.99x | 10.55x | 16.78x |
| EMP | 0.81x | 1.85x | 3.35x |
| Total | 2.64x | 6.64x | 42.39x |
RailTel IPO Allotment Status
RailTel IPO allotment status will be available on KFin Technologies’ website.
Click on this link to get allotment status.
Final thoughts
RailTel IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision.
Happy Investing
Pingback: IPO List 2021: a complete list of IPOs in 2021 - finvestfox.com