RAILTEL CORPORATION OF INDIA LIMITED IPO

Incorporated in 2000, Railtel Corporation of India Limited is one of the largest neutral telecom infrastructure providers in India with a Pan-India optical fiber network presence. It is wholly owned by the Government of India under the control of the Ministry of Railways. Railtel is a key partner for digital transformation to Indian Railways. The company aims to modernize the telecom system of Indian Railways which is used for train control, operations & safety measures. Also, the company is committed to providing innovative services backed with advanced & cutting edge technologies to the Indian telecom market.

As of March 2020, 5,655 stations have been wifi enabled by Railtel. Currently, there are 5,900+ stations which are wifi-enabled by Railtel's optical fiber network. It has a Pan-India presence with 58,000+ RKM (Route Kilometer) of optical fiber network across all the important states, cities, and several rural areas. The network by Railtel covers around 70% of the total population of India.

As of March 2020, the company has total assets of Rs.2,398.10 Crores. The total revenue for the FY 2020 was Rs.1,166 Crores. The revenue and profit have shown growth of 12.30% and 4.20% in the FY 2020 over FY 2019 respectively.

Railtel has a diversified portfolio of its products and services which include:

Data Centre and Disaster Recovery.
Cloud services and storage & servers.
Leased Line.
Security and Surveillance.
LAN, WiFi, and Public hotspots.
E-office.
Tower collocation.
Transmission network.
WAN and SWAN.
Telepresence services.

The promoter of the company is The President of India acting through the MOR (Ministry of Railways) under the Government of India.

Strengths of the company:

Railtel is one of the largest neutral telecom infrastructures provided in Pan India. It also has an optical fiber network.
It has a diversified portfolio of services & solutions.
Railtel is a key digital transformation partner to Indian Railways.
The company has a very strong financial performance.
The company has experience in executing projects of national importance with its strong pipeline of projects.
Railtel has a strong corporate governance and management team with significant industry experience.

Purpose of the IPO:

There is no fresh issue in the IPO. The company will not receive any proceeds from the offer.
To carry out the Government’s disinvestment plan.
To get the listing benefits of the equity shares on the stock exchange.

Financial Performance of the company:

	FY 2020	FY 2019	FY 2018
Total Revenue	1,166.00	1,038.26	1,021.21
Total Expenses	931.94	820.57	835.09
Profit after tax	141.06	135.35	134.00
Total Assets	2,398.10	2,227.67	2,322.87

*All the values are in crores and as per DRHP.

Valuation of the company:

	FY 2020	FY 2019	FY 2018
Basic Earnings per Share (EPS)	4.40	4.22	4.18
Diluted Earnings per Share (EPS)	4.40	4.22	4.18
Return on Net Worth (%)	10.30%	10.50%	10.90%
Net assets value per Equity share	42.67	40.17	38.30

*as per DRHP.

RailTel Corporation of India Limited DRHP

IPO details:

Face Value	₹10 per equity share
Market Lot	155 Shares
Minimum Order Quantity	155 Shares
Price Band	₹93 - ₹94 per equity share
Issue type	Book Built Issue IPO
Issue Size	₹819.24 Crores
Fresh Issue	-
Offer for Sale	₹819.24 Crores
Listing	NSE, BSE

Important IPO dates:

Open Date	16th February 2021
Close Date	18th February 2021
Basis of Allotment Date	23rd February 2021
Initiation of Refunds	24th February 2021
The credit of shares to Demat Account	24th February 2021
Listing Date	26th February 2021

Allocation Quota:

Category	Portion
Qualified Institutional Buyers (QIBs)	Not more than 50%
Non- Institutional Buyers (NIIs)	Not less than 15%
Retail Investors	Not less than 35%

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