RailTel-Corporation-of-India-Limited-Image

RailTel is an Information and communication technology infrastructure provider and are one of the largest neutral telecom infrastructure providers in India (Source: CRISIL Report).Company offers diverse range of services across industries and portfolio including Telecom Network Services (leased line, MPLS based VPN facilities, Retail broadband  services through ‘RailWire’ platform, Telecom Infrastructure services, Managed  Data centre and Hosting Services(Cloud computing, Aadhar authentication, Disaster recovery services), Projects(System Integration Services).Company is a key partner to the Indian Railways in digital transformation and had exclusive right of way along 67,415 route kilometers connecting 7,321 railway stations for laying optical fiber cable and already established optical fiber network of 59,098 route kilometers and covers 5,929 railway stations across towns and cities in India. It operates data centers in Gurugram, Haryana and Secunderabad, Telangana.

RailTel Corporation of India Limited IPO

Wants To Apply Online

 

Issue Details

Objects of the issue
  • To carry out Disinvestment Plan.
  • To achieve the benefits of equity share listing on stock exchanges .
Issue Size Issue Size – Rs.819.24 Crore.

Offer for Sale-Rs 819.24.Crore.

Face value Rs.10 Per Equity Share.
Issue Price Rs. 93 – Rs. 94.
Bid Lot 155 shares.
Listing at  BSE, NSE
Issue Opens: 16thFebruary 2021 – 18th February 2021.
QIB 50% of Net Issue Offer.
Retail 35% of Net Issue Offer.
NIB 15% of Net Issue Offer.

Check RailTel Corporation of India Limited IPO Allotment Status

RailTel Corporation of India Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To RailTel Corporation of India Limited IPO Allotment Status

  2. Go to Application Status

  3. Select IPO as RailTel Corporation of India Limited

  4. Enter your PAN Number or Application Id or DP Client Id.

 

RailTel Corporation of India Limited IPO

Application Form

Financial Performance:

Financial-Performance

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 100 72.84
Public 27.16

Source: RHP, EWL Research

Strengths:

  • Among the largest neutral telecom infrastructure providers in India with pan-India optic fiber network.

  • Diversified Portfolio of Services and Solutions.

  • Key Partner to the Indian Railways in Digital transformation.

  • Strong Track Record of Financial Performance.

  • Zero Debt Company.

Key Highlights:

  • CAGR in Revenue for 3 years stood at 7.46%.

  • Net profit Margin for the FY20 Stood at 12.5% vs 13.49% in FY19.

  • Company has a current Ratio of 1.53 Times.

  • Company has generated Rs.173.3 crore of Operating cash flows during FY20 and CFO/PAT stood at 1.22 Times.

Risk Factors:

  • Changes in laws, regulations or governmental policy could potentially adversely affect the business prospects.

  • Non-Continuous Upgrade in technology in telecommunications or related services may adversely affect the firm to stay competitive.

  • Any delay in the collection of dues and receivables may have adverse effect on results of operations and cash flows.

Outlook:

Company is one of the largest neutral telecom infrastructure providers in India. The Indian Railways currently uses GSM-R based 130 network and intends to migrate to the LTE network. Company also an implementing partner for the Bharat Net project to create optical fiber cable based broadband infrastructure in laying optical fiber cable across 36,000 gram panchayats in India. Majority of the revenue comes from Telecom Network services in which approximately 35%-40% comes from the private sector companies listed in E-mini Fortune 500 and has increased it’s broadband service space by 2.75 in 9 months of FY21 and proposed the projects in Motor Train control system, Defence, Healthcare etc. At Higher Band of the Price P/E works out to be 25 Times for FY21E.On grounds of sustainability and Futuristic business model we recommend to Subscribe the IPO.

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