Railtel Ltd is an information and communications technology (“ICT”) infrastructure provider and are one of the largest neutral telecom infrastructure providers in India.
Railtel is 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.
Company was incorporated 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.
As of June 30, 2020, Railtel’s optic fiber network covers over 55,000 route kilometers and covers 5,677 railway stations across towns and cities in India.
Company operates data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways.
company also undertakes various ICT projects for the Indian Railways, central government and state governments, including various train control system projects for Indian Railways.
Competitive Strengths
- RailTel Corporation a “Mini Ratna (Category-I)” PSU is one of the largest neutral telecom infrastructure providers in the country.
- The Vision of the company is to become the preferred telecom solutions and services provider for the knowledge economy.
- The aim of the company is to attain leadership in providing premier telecom infrastructure service by offering a cost-effective state of the art communication solutions.
- For the year ended March 2018, the company posted consolidated revenues of INR1,031 crore, marking a growth of 14.04%. IN the same year, net income jumped 23.44% to INR158 crore.
Company Financials
| Particulars | FY20 | FY19 | FY18 |
| Revenue | 1166.0 | 1038.2 | 1021.2 |
| Net Profit | 141.0 | 135.3 | 134.0 |
Objects of the Issue
The net proceed from the IPO will be used towards following purposes:
- To carry out the disinvestment plan.
- To achieve the benefits of equity share listing on the stock exchanges.
Railtel IPO Details
| IPO Open Date | 16 FEB, 2021 |
| IPO Close Date | 18 FEB, 2021 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹ 819 Cr |
| Offer for Sale | 8,71,53,369 Equity Share |
| Face Value | ₹10 Per Equity Share |
| IPO Price | [93] to [94] per equity share |
| Market Lot | 155 Shares |
| Min Order Quantity | 155 Shares |
| Listing At | BSE, NSE |
Railtel IPO – Schedule
| Bid/Offer Opens On | 16 FEB, 2021 |
| Bid/Offer Closes On | 18 FEB, 2021 |
| Finalisation of Basis of Allotment | 23 FEB, 2021 |
| Initiation of Refunds | 24 FEB, 2021 |
| Credit of Shares to Demat Account | 25 FEB, 2021 |
| IPO Shares Listing Date | 26 FEB, 2021 |
Railtel IPO Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 155 | ₹14,570 |
| Maximum | 13 | 2015 | ₹1,89,410 |
Railtel IPO: How To Apply
Promoters play a very important role in raising much-needed business revenue.
Apply For Railtel IPO Through ASBA
First, you should know what ASBA is. ASBA stands for Restricted Application Support. It is an application by the bank to apply for an IPO.
You apply with ASBA through the bank because initially, the bank covers the cost of purchasing the IPO. This amount is deducted from your account only after receiving IPO share shares in your Demat account.
All the major banks in the country are expanding the ASBA center. There are about 30 banks on the list, some of which are IDBI Bank Limited, Citi Bank, Punjab National Bank, etc.
The center may be expanded once they have been authorized to do so. These banks block the corresponding amount until the IPO allocation process is finalized.
Now, most of you are probably thinking about how to use the Railtel IPO with ASBA. The process can be completed online or offline for your convenience.
Apart from this, you can also bid for an Railtel IPO through your stockbroker’s online portal (such as Zerodha, Edelweiss, Motilal Oswal, etc.)
Company Contact Information
| RailTel Corporation of India Limited Plate – A, 6th Floor, Office Block, Tower-2 East Kidwai Nagar, South Delhi New Delhi 110023, India Phone: +91 11 2290 0600 Email: cs@railtelindia.com Website: http://www.railtelindia.com/ |
