RailTel IPO opens for investment from today, know every detail before investing

RailTel IPO: RailTel's IPO opens for investment from today, know every detail before investing

RailTel's IPO size is Rs 819 crore. The second month of this calendar year is going on and IPOs of companies like Indigo Paints IRFC HFFC and Stove Craft have already been listed on the stock markets.

RailTel IPO
Image source: Railtel India website

The IPO of the government-owned company RailTel Corporation is opening for subscription from today on February 16. One can invest in it till 18 February. Anchor investors will be able to subscribe to the issue on February 15. The size of this IPO is Rs 819 crore. The company has fixed the price of each share for this IPO at Rs 93-94.
RailTel will hold 8,71,53,369 equity shares in its IPO. Out of this, 5 lakh equity shares are reserved for the employees of the company. In this way, the government will reduce its stake to 27.16 percent. At the same time, 50 percent of this issue is reserved for qualified institutional buyers.

Incorporated in 2000, RailTel Corporation is a public sector business unit, wholly owned by the Government of India (GOI) and administrated by the Ministry of Railways. It is an Information and Communication Technology (ICT) infrastructure provider company. The company was established with the key objective to modernize telecom infrastructure and today, it is one of the largest telecom infrastructure providers.

RailTel uses the latest technology like high dense wavelength division multiplexing (DWDM) and multi-protocol label switching (MPLS) network. The company has data centers in Haryana, Gurugram, Secunderabad, and Telangana.

Key Facts about RailTel Corporation

  • One of the largest neutral telecom infrastructure providers in India with PAN India optic fiber network.
  • Diversified Range of services i.e. Telecom Network, Telecom Infrastructure, Data Center and Hosting, and Projects.
  • Operates an optic fiber network covering 59,098 route Kms and 5,929 railway stations in India.
  • RailTel Corporation has an exclusive right of way along 67,415 Kms connecting 7,321 railway stations.
  • Center Network Operation Center at New Delhi and 4 NOCs at Mumbai, Delhi, Kolkata, and Secunderabad.
  • It has 305,746 retail customers and 5,023 Access network providers (ANPs) to deliver the last mile connectivity.

Company Promoters:

The President of India, acting through the Ministry of Railways is the promoter of the company.

Company Financials:

Summary of financial Information (Restated Consolidated)
ParticularsFor the year/period ended (Rs in million)
Total Assets24,821.5023,98122,276.7523,228.79
Total Revenue5,537.8411,660.0510,382.6610,212.18
Profit After Tax455.841,410.661,353.561,340.06

Objects of the Issue:

The net proceed from the IPO will be used towards following purposes:

  1. To carry out the disinvestment plan.
  2. To achieve the benefits of equity share listing on the stock exchanges.

RailTel IPO Details

IPO Opening DateFeb 16, 2021
IPO Closing DateFeb 18, 2021
Issue TypeBook Built Issue IPO
Face Value₹10 per equity share
IPO Price₹93 to ₹94 per equity share
Market Lot155 Shares
Min Order Quantity155 Shares
Listing AtBSE, NSE
Issue Size87,153,369 Eq Shares of ₹10
(aggregating up to ₹819.24 Cr)
Offer for Sale87,153,369 Eq Shares of ₹10
(aggregating up to ₹819.24 Cr)

RailTel IPO Tentative Timetable

The RailTel IPO open date is Feb 16, 2021, and the close date is Feb 18, 2021. The issue may list on Feb 26, 2021.

IPO Open DateFeb 16, 2021
IPO Close DateFeb 18, 2021
Basis of Allotment DateFeb 23, 2021
Initiation of RefundsFeb 24, 2021
Credit of Shares to Demat AccountFeb 24, 2021
IPO Listing DateFeb 26, 2021

RailTel IPO Lot Size

The RailTel IPO market lot size is 155 shares. A retail-individual investor can apply for up to 13 lots (2015 shares or ₹189,410).

ApplicationLotsSharesAmount (Cut-off)

RailTel IPO Promoter Holding

Pre Issue Share Holding100%
Post Issue Share Holding72.84%

RailTel IPO Subscription Status (Bidding Detail)

The RailTel IPO is subscribed 42.39x times on Feb 18, 2021 05:00. The public issue subscribed 16.78x in the retail category, 65.14x in the QIB category, and 73.25x in the NII category

Know the possible date of allocation and listing of shares

ICICI Securities, IDBI Capital, SBI Capital Markets are the merchant bankers of this issue. Allotment of this IPO is expected to be completed by February 23, 2021, according to stockbrokers. At the same time, its listing is expected to be on the stock market on 26 February 2021.
It is known that RailTel was established on September 26, 2000. It is a public sector Miniratna company. It is the country's largest provider of neutral telecom infrastructure. In December 2018, the Union Cabinet allowed RailTel Corporation's IPO. It was established with the goal of realizing additional revenue through modernization of systems related to train control, operation and safety and development of nationwide broadband and multimedia networks. This company has a large optical fiber network. As of June 30, 2020, the company's optical fiber network is 55,000 km long and spans 5,677 railway stations in various cities of the country. The company provides broadband telecom and multimedia networks across the country.

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