RailTel Corporation of India IPO opens on Feb 16, 2021, to Feb 18, 2021, for Rs 819.24 crore IPO. The IPO comprises no fresh issue and an offer for sale of 87,153,369 equity shares. It will not get any proceeds from the offer and all the proceeds will be remitted to the Government of India.
Company Overview
RailTel Corporation of India is one of the largest neutral telecom infrastructure providers, wholly owned by the Government of Indian and under the control of Ministry of Railways. It is a Mini Ratna (Category-I) Public Sector Enterprise that provides Information and Communication Technology (ICT) infrastructure.
It was founded on Sep 26, 2000, to modernise the existing telecommunication system for train control, operation and safety and generate extra revenues by creating a broadband and multimedia network by laying OFC along the railway tracks.
As of Sept 30, 2020, its OFC network covered 58,000 route Km and 6,750 railway stations across towns and cities. The company operates data centres in Haryana, Gurugram, Secunderabad and Telangana to host and collocate critical applications for customers including the Indian Railways.
It provides a wide range of Telecom services to its customer as under:
- Managed Data Services
- Leased Line
- Virtual Private Network
- Internet Leased Line
- Data Centre
- Tower collocation
- Rack and space
- NLD for voice carriage
To generate revenue through its expertise in the telecom field, the company had taken the following projects:
- National Optical Fiber Network
- Telecom and IT services related projects
- Enterprise specific IT & ITES Projects
Company’s Strengths
- It is among the largest neutral telecom infrastructure providers in India with pan-India optic fiber network
- A diversified portfolio of products and services.
- A 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 team with strong corporate governance and senior management team with significant industry experience
Objects of the Offer
- To carry out the disinvestment plan.
- To enjoy the benefits of listing the Equity Shares on the Stock Exchanges.
Financials of RailTel Corporation of India
| Parameter (in Rs Cr) | FY20 | FY19 | FY18 |
| Total Assets | 2398 | 2228 | 2322 |
| YoY Growth | 8% | -4% | |
| Total Revenue | 1166 | 1038 | 1021 |
| YoY Growth | 12% | 2% | |
| EBITDA | 322 | 337 | 282 |
| EBITDA Margin | 27.6% | 32.4% | 27.6% |
| PAT | 141 | 135 | 134 |
| YoY Growth | 4% | 1% |
Comparison with Peers
The company has no listed peers. Its primary competitors are private sector telecom service providers, public and private sector telecom infrastructure companies and other infrastructure companies.
RailTel Corporation of India IPO Issue Details
| Issue Open | Feb 16, 2021- Feb 18, 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 87,153,369 equity shares of ₹ 10 (aggregating up to ₹ 819.24 Crores) |
| Fresh Issue | No fresh issue |
| Offer for Sale | 87,153,369 equity shares of ₹ 10 (aggregating up to ₹ 819.24 Crores) |
| Face Value | ₹ 10 per equity share |
| Issue Price | ₹ 93 to ₹ 94 per equity share |
| Market Lot | 155 shares |
| Min Order Quantity | 155 shares |
| Listing At | BSE, NSE |
| Allotment Date | Feb 23, 2021 |
| Listing Date | Feb 26, 2021 |
RailTel Corporation of India IPO Bid Details
| Sl No. | Category | Subscription Status (No. of times) | ||
| Feb 16, 2021 | Feb 17, 2021 | Feb 18, 2021 | ||
| 1. | QIB | 0.00x | 2.96x | 65.14x |
| 2. | NII | 0.75x | 2.63x | 73.25x |
| 3. | RII | 4.99x | 10.55x | 16.78x |
| 4. | Employee | 0.81x | 1.85x | 3.35x |
| Total | 2.64x | 6.64x | 42.39x | |
RailTel Corporation of India IPO Lot Size and Price for RII
| Application | Lots | Shares | Amount (Cut-off) |
| Minimum | 1 | 155 | ₹ 14,570 |
| Maximum | 13 | 2015 | ₹ 189,410 |
| Book Running Lead Managers to the Offer |
| 1. ICICI Securities Limited |
| 2. IDBI Capital Markets & Securities Limited |
| 3. SBI Capital Markets Limited |
| Registrar to the Offer |
| KFin Technologies Private Limited |
Selenium Tower-B, Plot No. 31 & 32, Financial |
| Registered and Corporate Office: Plate – A, 6th Floor, Office Block, Tower-2, East Kidwai Nagar, South Delhi, New Delhi 110023, India |
Source: RailTel Corporation of India Limited DRHP
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