RailTel IPO Launch Today: Government-owned company RailTel’s 819 crore IPO is opening on 16 February i.e. Tuesday.
RailTel IPO Launch Today: Government-owned company RailTel’s 819 crore IPO is opening on Tuesday, February 16. The company has fixed the price band for IPO at Rs 93-94 per share. This IPO will open on 16 February and can be invested in it till 18 February. The government aims to raise Rs 819 crore through this IPO. Signs from gray market have been positive. In the gray market, the company’s share had reached a 50 percent premium. In such a situation, there may be a craze in your mind regarding the IPO. Are you thinking of putting money in this IPO? If yes, then you should keep every information about it before investing.
RailTel Corporation will issue 8,71,53,369 equity shares under the offer for sale under the IPO. Out of which 5 lakh equity shares are reserved for the employees of the company. The company will not get any amount from this offer, the entire amount will go to the government. ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are the book running lead managers to the issue.
What to say about the expert
Samco Securities Head of Equity Research, Nirali Shah It is said that under the disinvestment target, the government is bringing an IPO to raise Rs 819.24 crore through offer for sale at RailTel. 66 percent of the company’s revenue comes from its telecom segment. While the remaining revenue was from the railway and other projects. RailTel can benefit from 5G growth in India. At the same time, the company can also play an important role in digital transformation of railways. The good thing is that the sectors which have had the least impact of the coronavirus epidemic have also included the telecom sector. Rather, the sector has benefited due to the consumption of data. Rail Tail is a debt-free company. The company has been in revenue growth singe digit during FY18 to FY20. The company is dependent on government entities. Another noticeable point is that about 24 percent of the company’s revenue comes from the top 3 customers. At the same time, it presents the highly regulated industry, which is a matter of risk. Overall, investors should invest money for listing gains.
IPO 2020: RailTel will raise Rs 700 crore from IPO, filed with SEBI
About the company
Rail Tail Corporation of India is the information and communications technology (ICT) infra provider of the country. The company today is the leading telecom infrastructure provider of Deya. The company was started in the year 2000, it works under the Ministry of Railways. Its products and services include Telecom Network Services, Telecom Infrastructure Services, Data Center & Hosting Services and System Integration Services. The company’s objective is to earn additional income by providing control operations, safety of trains and providing broadband and multi-media network facilities across the country.
Company Financial
RailTel’s total assets for the quarter ended September 30, 2020 were close to Rs 2482 crore, while revenue was around Rs 554 crore. At the same time, the company’s profit was about 46 crores. It has a 59,098 route kilometer optical fiber network that connects 5929 railway stations in the country by January 2021. RailTel’s shares will be listed on both BSE and NSE indices.
RailTel IPO: IPO to open on February 16; share is only Rs 93-94; Check complete details