RailTel IPO

Open Date 16th Feb 2021
Close Date 18th Feb 2021
Price Band Rs. 93 - Rs. 94 per equity share
Lot Size 155 shares and in multiples thereafter
Investment Per Lot Rs. 14,570 per lot
Listing at NSE and BSE
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RailTel IPO

RailTel IPO Details

RailTel, is an Information and Communications Technology provider and a ‘Mini Ratna’ public sector enterprise. One of the largest neutral telecom infrastructure providers in India.

RailTel enjoys a strategic partnership with Indian railways and exclusively provides ‘mission critical’ connectivity services. RailTel has a Right of Way (Row) along the railway track to lay optic fiber cables across India. RailTel covers over 58,742 route kms of optic fiber network while connecting 5,848 railway stations in India. RailTel IPO share price is expected to be between Rs.93-94 with RailTel IPO launch date being 16th Feb.

RailTel is an ISO certified company with top level certifications for quality management systems, information security management systems, and service management systems with a clear mission that encapsulates it’s direction ‘ To attain leadership in providing premier telecom infrastructure service by offering the cost-effective state of the art communication solutions.’

  • The total issue size is of 87.1534 mn shares (Rs.8,105.3 - 8,192.4mn)
  • With this IPO, RailTel intends to proceed with the OFS 87.1534 mn shares (Rs.8,105.3 - 8,192.4mn)

RailTel IPO Dates

Open Date 16th Feb 2021
Close Date 18th Feb 2021
Allotment Date 23rd Feb 2021
Initiation of Refunds 24th Feb 2021
Credit of Shares to Demat Account 24th Feb 2021
Listing Date 26th Feb 2021

RailTel IPO Price

IPO Price Band Rs. 93 - Rs. 94 per equity share
Minimum Investment Amount Rs. 14,570
Maximum Investment Amount Rs. 1,89,410
Face Value Rs. 10 per equity share

RailTel IPO Lot Size

Minimum Lot Size 1 (155 shares)
Maximum Lot Size 13 (2015 shares)

RailTel IPO Review/Ratings

Key Competitive Strengths

  1. One of the largest neutral telecom infrastructure providers in India
  2. Exclusive Right of Way (ROW) along the railway tracks for laying optic fiber cables
  3. RailTel covers over 58,742 route kms of optic fiber cables and connects 5,848 railway stations across India.
  4. Strategic relationship with Indian Railways and undertakes wide variety of ICT projects including ‘mission critical’ connectivity services for them
  5. Instrumental in rolling out National Knowledge Network – Bharat Net for Government of India
  6. RailTel vision ‘Our Vision is to become the preferred telecom solutions and services provider for the knowledge economy.’

Risk And Concerns

  • Unfavorable government policies and regulations
  • Lower spending from the central and state governments
  • Difficulty in monetizing assets
  • Competition from the private operators

Download the RailTel IPO Report

RailTel IPO Subscription Breakup

QIBs 50% (43.3267mn shares)
Non-Institutional Investors 15% (12.9980mn shares)
Retail Individual Investors 35% (30.3287mn shares)

RailTel IPO Fundamental Analysis

  1. PE Ratio = 15.8x as on FY 20
  2. Debt to Equity = 0.2x
  3. Return on Equity = 10.3% as on FY 20
  4. PAT = Adjusted PAT grew by 40.6% in FY20 from Rs. 1,353.6mn in FY19 to Rs. 1,903.6mn in FY20
  5. EBITDA = EBITDA grew from 3,021.6mn in FY19 to 3,338.1mn in FY20

Online Procedure to Apply For RailTel IPO

  1. Go to the IPO Section => IPO Listing => Open IPO.
  2. On tapping RailTel IPO, you can directly click on Subscribe to apply or even view the IPO details.
  3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
  4. Once you select ‘Subscribe’. Your bid will be executed.
  5. You can check the status of your IPO bid in the IPO Transactions section.
Click here to read the entire procedure to apply for the IPO
Apply for the RailTel IPO with Jiffy

RailTel IPO FAQs

Yes, IPO application for Retail Investors is up to 2 Lakhs.
You will have to opt for the ASBA – Application Supported by Blocked Amount facility. Please get in touch with your bank for the same, do check if your bank is in the list of Banks here: https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=34
No. Applications made by retail investors using third party UPI ID or by any category of investors using a third party bank account are liable for rejection.
Yes, before the issue closure date. You can do it through Jiffy itself. The blocked amount will be available in 1 working day.
To check your allotment status, use this link - https://linkintime.co.in/IPO/public-issues.html