RailTel IPO Review , Company Details, Date, IPO Subscribtion
RailTel is largely a Category-1 “Mini Ratna” PSU that is governed by the Ministry of Railways.
It is considered one of the biggest impartial telecom infrastructure service providers in the nation.
MINISTRY OF RAILWAYS is said to have 100% shares of the RailTel Corporation of India Ltd.
RailTel IPO Review and IPO Subscription Date
Table of Contents
The PSU was incorporated in 2000 as a Public Limited Company to design and develop nationwide Broadband Telecom and Multimedia Network in various parts of the country.
The firm’s functions are completely funded by internal accretions since 2013 and the company presently enjoys a debt-free status.
RailTel is on another journey to update its existing telecom system in regard to train control, operations, and safety.
It also envisages developing a nationwide broadband and multimedia network by laying optical fibre cable along the railway tracks.
It primarily acts as the mainstay for the network for the Indian Railways and has been working on various projects of national importance such as the National Knowledge Network and Bharat Net, with its optic fiber network that extends to over 55,000 km and 5,677 railway stations across towns and cities in the nation.
Recently, RailTel has announced that a 700 crore public offer will be offered for sale (OFS) from the
government.
ICICI Securities, IDBI Capital, SBI Capital Markets are selected as the book running lead managers to the issue.
Important things related to RailTel IPO
The company is likely to raise Rs 700 crore through the IPO
The IPO will be a full-scale offer by the central government
The Book Running Lead Managers (BRLM) for the IPO are ICICI Securities, IDBI Capital Market and Securities, and SBI Capital Markets Ltd.
Considering the prospectus, the company has set up a consistent track record of financial performance and growth.
We have been profitable since Fiscal 2007 and have steadily professed and paid dividends since Fiscal 2008, adding that the company's net worth has been affirmative since the establishment
and has been consistently increasing.
RailTel & operations have been funded totally by internal accruals since the fiscal year 2013 and
it is a debt-free company, according to the prospectus.
RailTel IPO Details
| IPO Details | IPO DATE |
| IPO Opens on | 2020 |
| IPO Closes on | 2020 (yet to update) |
| Price Band | Rs per share |
| Bid Lot: | Yet to Update |
| Maximum Price | Rs |
| Fresh issue | Rs Cr |
| Offer for Sale | Rs |
| IPO Size | Rs 00 Cr (Approx) |
| Retail & Employees Discount | Rs 0 per share |
RailTel IPO Valuations
| Face Value | Rs 10 |
| Earnings Per Share (EPS) | Rs |
| PE Ratio | 0 (Approx) |
| Return on Net Worth (RONW) | % |
| Net Asset Value | Rs /Share |
For the fiscal ended March 31, 2020, the company has witnessed Rs 184.76 crore in profit before taxes,
as per DRHP. Meanwhile, profit after tax stood at Rs 141.06 crore.
Among distinguished references, it was chosen for working on the National Knowledge Network (NKN), Bharat Net, and optical fiber-based connectivity project in northeast India.
As per the report of the DRHP, RailTel has reported balanced operational profitability for 2019-20.
The margin of 30 percent was between Vodafone Idea and (33 percent) and Reliance Jio Infocomm (40
percent).
The icing is improved RoCE or return on capital employed by 14 percent. RJio has a RoCE of 13 percent for the same comparison period.
The company’s net worth has been optimistic since incorporation and is constantly growing, according
to its valuation.
During FY18-20, revenue from operations witnessed a compounded-annual-growth of 7.47 percent.
For investors, the major highlight on dividends is responded to as , we have been giving dividends since Fiscal 2008 & it included.
