RailTel IPO: Key Details
Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.
Company Information
RailTel Corporation of India, incorporated 2000, Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways. It is an information and communications technology (“ICT”) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India.
As of June 30, 2020, its optic fiber network covers over 55,000 route kilometres and covers 5,677 railway stations across towns and cities in India. The transport network is built on high capacity dense wavelength division multiplexing (“DWDM”) technology and an Internet protocol/ multi-protocol label switching (“MPLS”) network over it to support mission-critical communication requirements of Indian Railways and other customers.
Their portfolio of services can be broadly classified as below:
- Telecom Network Services – National Long Distance (“NLD”) Services and Internet Service Provider (“ISP”) Services
- Telecom Infrastructure Services – Passive Infrastructure (“IP-1”) Services
- Managed Data Center and Hosting Services – Data Centre and Managed Hosting Services, Telepresence Services (“TPaaS”), and Security Operations Centre as a Services (“SOCaaS”)
- Projects (System Integration Services) – ICT Hardware, Software and Service System Integration Projects, digital services and other services
Competitive 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
- Experience in executing projects of national importancewith a robust pipeline of projects
- Strong track record of financial performance
Company Strategy
- Continue to expand its telecom services and deploy the latest technologies
- Further diversify services and solutions with a focus on Indian Railways
- Expand the services outside India
Proceeds from RailTel IPO will be used to:
- Carry out the disinvestment of 8,71,53,369 Equity Shares by the selling shareholder constituting 27.16% of Company’s paid-up Equity Share capital
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
The Company will not receive any proceeds from the Offer and all proceeds shall go to the selling shareholder (Government of India).
Further, the company expects that the listing of the Equity Shares will enhance its visibility and brand image among existing and potential customers.
RailTel IPO: Financials
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue from Ops | 976.78 Cr | 1,003.27 Cr | 1,128.05 Cr |
| Profit before Tax | 159.61 Cr | 217.69 Cr | 184.76 Cr |
| Profit after Tax | 141.07 Cr | 135.36 Cr | 134.01 Cr |
| EPS (Basic) | 4.18 | 4.22 | 4.40 |
RailTel IPO Dashboard
Issue Details
| Type | Value |
|---|---|
| Issue Size | ₹819.24 Cr |
| Offer for Sale | ₹819.24 Cr |
| Face Value | ₹10/- per Equity Share |
| IPO Price | ₹93 – ₹94 |
| Lot Size | 155 shares |
| Lots | Min 1 – Max 13 |
Key Dates
| Date Type | Date |
|---|---|
| Bid Open | 16/02/2021 |
| Bid Close | 18/02/2021 |
| Allotment Finalization | 24/02/2021 |
| Initiation of Refunds | 25/02/2021 |
| Credit of Shares | 26/02/2021 |
| Listing Date | 01/03/2021 |
Lot Size and Price
| Lots | Shares | Amount |
|---|---|---|
| 1 | 155 | ₹14,570 |
| 13 | 2015 | ₹1,89,410 |
Promoter Holding
| Holding | Percentage |
|---|---|
| Pre-Issue | 100% |
| Post-Issue | 72.84% |
RailTel IPO: Investor Quota and Shares Offered
| Investor Type | Quota | Shares on Offer |
|---|---|---|
| QIB | 50% | 1,73,69,237* shares |
| NII | 15% | 1,29,98,006 shares |
| RII (Retail) | 35% | 3,03,28,680 shares |
| Employee | – | 5,00,000 shares |
| Total | 100% | 6,11,95,923* shares |
RailTel IPO: Risks
- The telecommunications industry in India is highly regulated and changes in laws, regulations or governmental policy could potentially adversely affect the business
- Company is dependent on and derive a substantial portion of the revenue from PSU customers, the Indian Railways and other GoI entities as well as State Governments, which exposes them to risks inherent in doing business with them
- If the company do not continue to provide telecommunications or related services that are technologically up to date, the company may not remain competitive
- Company is involved in certain legal proceedings, any adverse developments related to which could materially and adversely affect the business, reputation and cash flows
- Internet security concerns and illegal distribution by third-parties could adversely affect the broadband internet access services
For complete internal and external risk factors, you can refer the DRHP of the company.
RailTel IPO: Registrar and Lead Managers
Registrar of the Issue
KFin Technologies Private Limited
Selenium Building, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.
Phone: +91 40 6716 2222
E-mail: [email protected]
Lead Managers of the Issue
ICICI Securities Limited
IDBI Capital Markets & Securities Limited
SBI Capital Markets Limited
Tel: +91 22 2288 2460
Email: railtel.[email protected]/
[email protected]
