RailTel Corporation of India Limited is ready to join the list of the listing companies in Dalal Street. The public issue of the company will open for subscription on Feb 16 and the same will close on Feb 18. Here is the RailTel Corporation of India Limited IPO Review.
RailTel Corporation of India Limited IPO Review
About the Company- Railtel is one of the Mini Ratna companies and the largest neutral telecom infrastructure provider. It was incorporated in 2000. Railtel corporation is wholly owned by the Government of India and administrated by the Ministry of Railways.
The company’s primary role is to upgrade, modernize and maintain the existing telecom system of train control and generate additional revenue by lying optical fiber cable along the rail tracks. On June 2020, Railtel covered an optical fiber network of 55,000 Km along 5677 railway station.
Competitive Strengths of the Company- The Competitive strengths of Railtel corporation are as follow-
- The fully state-owned company, critical for providing modern telecom infrastructure service to the Indian Railways.
- Strategically located office campus in metro cities.
- Diversified range of services i.e. Telecom Network, Telecom Infrastructure, Data Center and Hosting, etc.
- It has 3,05,746 retail customers and 5,023 access network providers to deliver the last mile connectivity.
- Strong financials and performance.
- Experienced management.
RailTel Corporation of India Limited IPO Details
IPO issue size- The Government of India (GOI) aims to raise Rs. 819 crore at the higher end of the Railtel IPO price band.
The price band of the issue- Railtel will open its initial public offering for subscription on Feb 16, with the price band fixed at Rs. 93-94 per share.
IPO Dates- The Railtel Corporation of India Limited IPO Open date is Feb 16, 2021, and the close date is Feb 19, 2021. The issue may list on Feb 26, 2021.
Shares Lot Size The market size of the IPO is 155 shares. A retail-individual investor can apply for up to 13 lots. (2015 shares of Rs. 1,89,410)
The object of the issue- Railtel corporation will utilize the proceeds for carrying out the disinvestment plan, and to achieve the benefits of equity share listing on the stock exchange.
IPO Registrar- The registrar of the Railtel Corporation of India is KFintech Private Limited.
IPO Lead Manager- The book running lead managers to the issue are the ICICI Securities Limited, IDBI Capital Market Service Limited, and SBi Capital Market Limited.
Listing- The company will list its equity shares on the BSE and NSE.
The promoter of the Company- The president of India, acting through the Ministry of Railways is the promoter of the company.
Important dates of Railtel IPO
Here is the Tentative Time Table of the IPO.
|IPO Open Date||Feb 16, 2021|
|IPO Close Date||Feb 18, 2021|
|Basis of Allotment Date||Feb 23, 2021|
|Initiation of Refunds||Feb 24, 2021|
|Credit of Share to Demat A/c||Feb 24, 2021|
|IPO Listing Date||Feb 26, 2021|
Financial analysis of the Railtel Corporation
Here is the financial analysis to opt for Railtel Corporation of India Ltd. for the year/period ended (Rs. in million).
|Particulars||Apr- Sep 2020||FY March 2020||FY March 2019||FY March 2018|
|Profit After Tax (PBT)||455.84||1410.66||1353.56||1340.06|
|Issue Type||Book Built Issue IPO|
|Issue Amount||819.24 Cr.|
|Fresh Issue||819.24 Cr.|
|Face Value of Share||Rs. 10 per Share|
|Price Band of IPO||Rs. 93 to Rs. 94 per shares|
|Lot Size||155 Shares and in multiples thereafter|
What is the issue size of the Railtel IPO?
The company plans to raise Rs. 819.24 Crore through the issue. The mainboard IPO is ready for the issue of 87,153,369 equity shares having the face value of Rs. 10 totalling up to Rs. 819.24 Crore.
What is the lot size in Railtel Corporation IPO?
The market size of the IPO is 155 shares. A retail-individual investor can apply for up to 13 lots. (2015 shares of Rs. 1,89,410)
Who is the registrar for Railtel IPO issue?
The registrar of the Railtel Corporation of India is KFintech Private Limited. The company will list its equity shares on the BSE and NSE.
Who is the lead manager of the Railtel IPO issue?
The book running lead managers to the issue are the ICICI Securities Limited, IDBI Capital Market Service Limited, and SBi Capital Market Limited.
Who is the promoter of the company?
The president of India, acting through the Ministry of Railways is the promoter of the company.
What is the Price Band of the Railtel IPO?
The company will open its initial public offering for subscription on Feb 16, with the price band fixed at Rs. 93-94 per share.
What are the open and close dates of the Railtel Corporation of India Limited IPO?
The Railtel Corporation of India Limited IPO Open date is Feb 16, 2021, and the close date is Feb 19, 2021. The issue may list on Feb 26, 2021.
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