RailTel Corporation of India IPO
- Shubham Pathak
- Feb 14, 2021
- 2 min read
Updated: Mar 2, 2021
RailTel IPO will open on February 16, 2021
Issue Details:
Price Band: 93-94.
Cutoff Price: 94
About RailTel: 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 with PSU as its major clients.
They have exclusive right of way for optical fiber cable network along 67,415 route kilometers and have optical fiber cable network along over 59,098 route kilometers connecting 5,929 railway stations as of January 31, 2021.
Some of their key business are:
Telecom Infrastructure Services
Telecom Network Services
RailWire
Internet Leased Line
Managed Data Center and Hosting Services
Systems Integration Services
Optical Fiber Network
SWOT Analysis:
RailTel Financials:
Steady growth in revenue even in Covid times considering the travel industry was majorly affected. The PAT for 2020 didn't grow in line because of exceptional item expenses.
The EPS growth is muted with approximated 2.5% CAGR which may disappoint investors.
Objects of the Issue:
To carry out the disinvestment of up to 87,153,369 Equity Shares by the Selling Shareholder making up of Company’s paid up Equity Share capital our Company
To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.
My view: I would apply for the IPO only for listing gains. Those who are risk averse can wait for the Grey Market Premium data to get updated and subscription details of first two days to get the idea of the participants interest. Considering the growth of EPS and EPS this stock is a complete no no for long-term investors. Do visit this blog and the link after 6pm to get updated details.
Grey Market Premium:
Subscription Details:
Allotment Status: Link
Listing Status:
Disclaimer: Views are shared for educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.
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