State-owned RailTel Corporation’s initial public offering opens for subscription on February 16, 2021. If you need help to decide whether it is a good IPO offer, we have compiled all the key information for your quick understanding.
RailTel is one of the Mini Ratna (Category – I) companies incorporated in 2000. The company is primarily involved in modernising and monitoring the deployment of the existing telecom system of train control and generate additional revenue through building fibre network along the rail tracks using an exclusive Right Of Way (ROW).
The corporation is one of the largest neutral telecom infrastructure providers owning pan-India optical fibre network of 55,000 km covering 5677 railway stations, as on June 2020.
Examination of the last seven years’ financials of the company reveals a steady growth in revenue. During this period the company’s income grew at a CAGR of 11.71 percent and clocked a PTA of Rs 138 crores in 2020. The company also doesn’t have any long-term loans. Besides a few short-term loans and credit advances, RailTel is net debt-free.
- RailTel is a PSU and one of the largest neutral telecom infrastructure providers with pan-India presence
- It is critical to the digital transformation of the Indian railways. It provides a wide range of ICT services to the Railways including MPLS data network for integrated payroll and accounting system and unreserved ticketing system
- RailTel has a diversified portfolio of information and communication technology (ICT) services including MPLS-VPN, leased lines services, data centre services, large network hardware system integration, software and digital services
- The company is profitable since 2007 and net debt-free, barring some short-term debt and credit advances
- The company has executed several projects of national importance
Key Information Regarding The IPO Offer
- The divestment plan includes 8.71 crores of OFS shares, amounting to 27.16 percent stake
- The two days IPO subscription window will open between February 16-18, 2021
- The government aims to raise Rs 819 crores from the IPO, will launch the shares in the price range of Rs 93-94 per share
- Half of the issue size is reserved for qualified institutional investors and upto 5 lakh shares for RailTel employees
- Retail individual investors need to apply for a minimum of 155 shares, amounting to minimum application value of Rs 14,570
- Retail investors must use ASBA only for the bid
- The shares will make a debut on both BSE and NSE stock exchanges on February 6, 2021
Apply for RailTel IPO from Angel One website or mobile app. Now open a Demat account following simple online steps. Apply now!