RailTel Corporation IPO – Review, Allotment, Subscription, GMP & DRHP
Last Updated Date: Sep 01, 2023Let’s have a detailed review of the company and analytics of the RailTel Corporation IPO release date, IPO offer price, subscription, RailTel Corporation Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
| Face Value | Rs 10 |
| Price Band | Rs 93 to Rs 94 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 155 Shares |
| Listing Date | Feb 26, 2021 |
| Offer for Sale | Rs 819.24 Cr |
| IPO Size | Rs 819.24 Cr |
| Tick Size | Rs 1 |
RailTel Corporation IPO is listed at [●] premium. Check out the live share price by clicking on the below link.
RailTel Corporation IPO – Summary
They are an information and communications technology (“ICT”) infrastructure provider and are one of the largest neutral telecom infrastructure providers in India.
They are a 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.
The company was incorporated on September 26, 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.
The Promoters of this company are THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA. The lead managers to the issue are ICICI Securities Limited, IDBI Capital Markets & Securities Limited, SBI Capital Markets Limited, and the Registrar to this issue is KFin Technologies Private Limited.
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RailTel Corporation IPO Date
The opening and the closing date of IPO of RailTel Corporation Limited is Feb 16, 2021 and Feb 18, 2021.
RailTel Corporation IPO Subscription
| Day / Date | QIB | NII | RII | Empl | Total Subscription |
| 1st Day – Feb 16 | 0.00x | 0.75x | 4.99x | 0.81x | 2.64x |
| 2nd Day – Feb 17 | 2.96x | 2.63x | 10.55x | 1.85x | 6.64x |
| 3rd Day – Feb 18 | 65.14x | 73.25x | 16.78x | 3.35x | 42.39x |
| Shares Offered or Net Issue | 17,369,237 | 12,998,006 | 30,328,680 | 500,000 | 61,195,923 |
The shares subscribed by the public will be updated here.
RailTel Corporation IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.
RailTel Corporation IPO Listing Date
Find the dates below on basis of allotment, refund, listing and more:
| Basis of Allotment Finalization | Feb 23, 2021 |
| Refunds Initiation | Feb 24, 2021 |
| Credit of Shares to Demat Account | Feb 24, 2021 |
| Share Listing Date | Feb 26, 2021 |
RailTel Corporation IPO Price Band / Cash Price
The face value of each share is Rs.10, but the price band of the IPO is Rs 93 – Rs 94.
RailTel Corporation IPO Equity Size
This Initial Public Issue of [●] Equity Shares of Rs.10 each for cash at a price of Rs.93 – 94 per equity share aggregating to Rs.6,000 million.
RailTel Corporation IPO Share Offering
Net Issue: The Offer less the Employee Reservation Portion, if any, i.e., 86,653,369 Equity Shares.
Issue Size: [●] Equity Shares of Rs.10 each, aggregating to Rs.[●] million
Offer for Sale: Offer for sale consists of Up to [●] Equity Shares of face value of Rs.10 each, aggregating Rs.[●] million.
RailTel Corporation IPO – Live Performance
The listing date of this IPO is NA. You can check the live performance of the IPO here, only after it is listed on exchanges.
RailTel Corporation IPO Grey Market Premium
The RailTel Corporation Limited IPO Grey Market Premium price is Rs 30-35, the Kostak rate is Rs 400 and the Subject to Sauda is Rs. 2500.
RailTel Corporation IPO – Company Overview
As of June 30, 2020, their optic fiber network covers over 55,000 route kilometers 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.
They operate data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways.
In addition to strategic and critical network infrastructure services, they also undertake various ICT projects for the Indian Railways, central government and state governments, including various train control system projects for Indian Railways.
RailTel Corporation IPO Business Verticals
They offer a diverse range of services across industries. Their portfolio of services can be broadly classified as below:
- Telecom Network Services
- Telecom Infrastructure Services
- Managed Data Center and Hosting Services
- Projects (System Integration Services)
Digital Services: They also collaborate with partners who offer solutions/ applications that are hosted on their data centers, they offer digital services including unified communications, Wi-Fi as a service, e-tendering/ e-auction/ smart payments and disaster management services.
Other Services: Other services offered by them include consultancy services for ICT services and solutions and signaling services including signal design and design automation software tools for the Indian Railways.
RailTel Corporation IPO – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & millions) | ||||
| 30-Sep-20 |
31-Mar-20 | Mar-19 | 31-Mar-18 | |
| Total Assets | 24,821.50 | 23,981.00 | 22,276.75 | 23,228.79 |
| *Total Revenue | 5,537.84 | 11,660.05 | 10,382.66 | 10,212.18 |
| Total Expense | – | 9,319.47 | 8,205.77 | 8,350.95 |
| Profit After Tax | 455.84 | 1,410.66 | 1,353.56 | 1,340.06 |
Earnings per Equity Share (in Millions)
| 31-Mar-20 | Mar-19 | 31-Mar-18 |
|
| Basic & Diluted | 4.40 | 4.22 | 4.18 |
Their revenue from operations have grown at a CAGR of 7.47% from Rs.9,767.79 million in Fiscal 2018 to Rs.11280.54 million in Fiscal 2020 and in Fiscal 2019, they had the lowest gearing ratio among Key Telecom Companies in India.
They have been profitable since Fiscal 2007 and have consistently declared and paid dividends since Fiscal 2008.
Their net profit margin of 12.50% in Fiscal 2020 was the highest among the Key Telecom Companies and Key IT/ICT Companies in India while their operating profit margin was the highest among the Key IT/ICT Companies in India
RailTel Corporation Limited IPO – Promoters
The Promoter of this company are:
THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA
List of Related Parties (Key Managerial Personnel)
- Puneet Chawla, Chairman and Managing Director
- Anand Kumar Singh, Director (Finance)/ Whole-time Director and Chief Financial Officer
- B. Sanjai Kumar, Director (Network, Planning and Marketing) / Whole-time Director
- Jasmeet Singh Marwah, Company Secretary and Compliance Officer
RailTel Corporation IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Up to [●] Equity Shares aggregating up to Rs.[●] million |
| of which: | |
| Employee Reservation Portion | Up to [●] Equity Shares aggregating up to Rs.[●] million |
| Net Offer | Up to 8,66,53,369 Equity Shares aggregating up to Rs.[●] million |
| Of which: | |
| QIB Portion | Not more than 43,326,683 Equity Shares |
| Non-Institutional Portion | Not less than 12,998,006 Equity Shares |
| Retail Portion | Not less than 30,328,680 Equity Shares |
| Equity Shares outstanding prior to the Issue | 320,938,407 Equity Shares |
| Equity Shares outstanding after the Issue | 320,938,407 Equity Shares |
RailTel Corporation IPO Issue Object
The objects of the Offer are:
(i) to carry out the disinvestment of [●] Equity Shares by the Selling Shareholder constituting [●]% of their Company’s paid up Equity Share capital their Company; and
(ii) to achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Their Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.
RailTel Corporation Limited IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- 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 importance with a robust pipeline of projects
- Strong track record of financial performance
- Professionally managed with strong corporate governance and senior management team with significant
industry experience
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-20 | 4.40 | 10.30 | – |
| 31-Mar-19 | 4.22 | 10.50 | – |
| 31-Mar-18 | 4.18 | 10.90 | 42.67 |
RailTel Corporation IPO : Competitive Peers
There are no listed companies in India that engage in a business similar to that of their Company. Hence, it is not possible to provide an industry comparison in relation to their Company.
RailTel Corporation IPO Lead Managers
| Lead Managers |
| ICICI Securities Limited,
IDBI Capital Markets & Securities Limited, SBI Capital Markets Limited |
RailTel Corporation IPO Registrar to offer
| Registrar to the Offer |
| KFin Technologies Private Limited (formerly known as Karvy Fintech Private Limited) Selenium Tower-B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi 500 032, Telangana, India Telephone: +91 40 6716 2222 E-mail: einward.ris@kfintech.com Website: www.kfintech.com Contact Person: M Murali Krishna |
RailTel Corporation IPO – Other Details
- Statutory Auditor – Suresh Chandra and Associates
- Legal Counsel to the Company – M/s. Crawford Bayley & Co.
- Bankers to the Company – Axis Bank Limited, HDFC Bank Limited, IndusInd Bank Limited, RBL Bank Limited, Punjab & Sind Bank, State Bank of India, Union Bank of India, Yes Bank Limited.
RailTel Corporation Limited IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
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Railtel IPO Review FAQs
Ques – What is the Issue Size of Railtel IPO?
Answer – If you do not know what the issue size signifies, it refers to the total value of the issues, i.e. the total number of shares is multiplied by the per share price. We provide the data pertaining to the issue size of the IPO and it is 819.24 Cr.
Ques – What is the Price band?
Answer – Price band is the lower and the highest level between which the share is priced. The price band is provided when the IPO is in the price development phase. We also keep you updated regarding the price band and as for now, the details are Rs 93 to Rs 94.
Ques – What is the Railtel IPO Open Date?
Answer – Feb 16, 2021 and Feb 18, 2021 are the opening and the closing date of this IPO. It refers to the date when the IPO allotment process commences and the shares are distributed to the general public. The next process, post allotment, is of listing the shares of the company in the stock exchanges.
Ques – What is the IPO Allotment Date?
Answer – The information regarding the allotment date is not provided by the company yet. This marks the day when the basis of allotment is released. The next steps are fixed, i.e. the refund process and the credit of shares into the demat account. Last step is of listing the shares in stock exchanges.
Ques – What is the IPO Listing Date?
Answer – The day when the company shares start trading in the stock exchange, i.e. listed in the stock exchanges for the first time refers to the IPO listing date. We have information on the IPO listing date of Railtel and it is Feb 26, 2021. The listing date marks the end of the IPO allotment process.
Ques – Who is the Registrar of this IPO?
Answer – The company has chosen KFin Technologies Private Limited as its registrar, which is one of the most popular registrar and transfer agent. They are based from Hyderabad, Telangana. You can visit theit official website www.kfintech.com for more information on the IPO.
Ques – Who is the Promoter of this Company?
Answer – The promoter of this company are THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA.
Ques – What is GMP of Railtel IPO?
Answer –We have obtained the GMP of this IPO and it is 10-15. The further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Ques – Is Railtel IPO good for Investment?
Answer – They are the unique market players , i.e. information and communications technology (“ICT”) infrastructure provider and one of the largest neutral telecom infrastructure providers in India. There are no listed company with same line of business, hence giving them the superior hand.
Ques – What is the PAT of this Company?
Answer – Profit after tax or PAT is one of the factors which is used to determine your investment options. We have the stats of the company, pertaining to the PAT for 3 consecutive years. The PAT of the year 2020 was 1,410.66, for the year 2019 it was 1,353.56 and for the year 2018 it was 1,340.06.
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