RailTel IPO Details
RailTel, is an Information and Communications Technology provider and a ‘Mini Ratna’ public sector enterprise. One of the largest neutral telecom infrastructure providers in India.
RailTel enjoys a strategic partnership with Indian railways and exclusively provides ‘mission critical’ connectivity services. RailTel has a Right of Way (Row) along the railway track to lay optic fiber cables across India. RailTel covers over 58,742 route kms of optic fiber network while connecting 5,848 railway stations in India. RailTel IPO share price is expected to be between Rs.93-94 with RailTel IPO launch date being 16th Feb.
RailTel is an ISO certified company with top level certifications for quality management systems, information security management systems, and service management systems with a clear mission that encapsulates it’s direction ‘ To attain leadership in providing premier telecom infrastructure service by offering the cost-effective state of the art communication solutions.’
- The total issue size is of 87.1534 mn shares (Rs.8,105.3 - 8,192.4mn)
- With this IPO, RailTel intends to proceed with the OFS 87.1534 mn shares (Rs.8,105.3 - 8,192.4mn)
RailTel IPO Dates
|Open Date||16th Feb 2021|
|Close Date||18th Feb 2021|
|Allotment Date||23rd Feb 2021|
|Initiation of Refunds||24th Feb 2021|
|Credit of Shares to Demat Account||24th Feb 2021|
|Listing Date||26th Feb 2021|
RailTel IPO Price
|IPO Price Band||Rs. 93 - Rs. 94 per equity share|
|Minimum Investment Amount||Rs. 14,570|
|Maximum Investment Amount||Rs. 1,89,410|
|Face Value||Rs. 10 per equity share|
RailTel IPO Lot Size
|Minimum Lot Size||1 (155 shares)|
|Maximum Lot Size||13 (2015 shares)|
RailTel IPO Review/Ratings
Key Competitive Strengths
- One of the largest neutral telecom infrastructure providers in India
- Exclusive Right of Way (ROW) along the railway tracks for laying optic fiber cables
- RailTel covers over 58,742 route kms of optic fiber cables and connects 5,848 railway stations across India.
- Strategic relationship with Indian Railways and undertakes wide variety of ICT projects including ‘mission critical’ connectivity services for them
- Instrumental in rolling out National Knowledge Network – Bharat Net for Government of India
- RailTel vision ‘Our Vision is to become the preferred telecom solutions and services provider for the knowledge economy.’
Risk And Concerns
- Unfavorable government policies and regulations
- Lower spending from the central and state governments
- Difficulty in monetizing assets
- Competition from the private operators
RailTel IPO Subscription Breakup
|QIBs||50% (43.3267mn shares)|
|Non-Institutional Investors||15% (12.9980mn shares)|
|Retail Individual Investors||35% (30.3287mn shares)|
RailTel IPO Fundamental Analysis
- PE Ratio = 15.8x as on FY 20
- Debt to Equity = 0.2x
- Return on Equity = 10.3% as on FY 20
- PAT = Adjusted PAT grew by 40.6% in FY20 from Rs. 1,353.6mn in FY19 to Rs. 1,903.6mn in FY20
- EBITDA = EBITDA grew from 3,021.6mn in FY19 to 3,338.1mn in FY20
Online Procedure to Apply For RailTel IPO
- Go to the IPO Section => IPO Listing => Open IPO.
- On tapping RailTel IPO, you can directly click on Subscribe to apply or even view the IPO details.
- On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
- Once you select ‘Subscribe’. Your bid will be executed.
- You can check the status of your IPO bid in the IPO Transactions section.
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