RailTel Corporation of India Limited IPO (Railtel IPO) Detail

RailTel Corporation of India Ltd. is a “Miniratna” (public sector) enterprise of the Government of India focusing on providing broadband and VPN services. RailTel was formed in September 2000 with the objective of creating nationwide broadband, telecom and multimedia network, to modernize the train control operation and safety system of Indian Railways. RailTel’s network passes through around 5,000 stations across the country, covering all major commercial centers.

Business:-

Wi-Fi and WiMax

RailTel, in collaboration with Google, provides free WiFi access at selected railway stations across India. Google chose railway stations as the location to provide free WiFi because stations have access to the reliable power supply and fiber provided by RailTel and because the passengers at a station come from all demographics of India.

The free WiFi service was launched at Mumbai Central railway station in January 2016.

  • April 2016, the service was expanded to 9 more railway stations. 
  • June 2016, Google announced that free Wi-Fi was available across 19 stations in India and was being used by over 1.5 million people.
  • September 2016, Google announced a public WiFi initiative called Google Station. Google plans to expand free WiFi coverage under the initiative to locations such as cafes and malls across India, and later expand worldwide.
  • In June 2018, Google announced that its Free Wi-Fi project is now powering 400 Indian railway stations. As a result, there are now more than 8 million people accessing the internet each month via the project.

Railwire

Based on its nationwide fiber network, RailTel offers various bandwidth-intensive applications to its customers. One such initiative is RailWire, a joint venture with MSPs to provide Voice, Video, and Multimedia access on a single wire at a customer’s home or office.

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:

ParticularsFor the year/period ended (Rs in million)
30-Sep-2031-Mar-2031-Mar-1931-Mar-18
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)

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)
Minimum1155₹14,570
Maximum132015₹189,410

Promoter Holding

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

Subscription Status (Bidding Detail)

The RailTel IPO is subscribed 6.64x times on Feb 17, 2021, 07:49. The public issue subscribed 10.55x in the retail category, 2.96x in the QIB category, and 2.63x in the NII category.

CategoryIPO Subscription
QIB 2.96x
NII 2.63x
RII 10.55x
Employee 1.85x
Total 6.64x

IPO Prospectus

Company Contact Information

RailTel Corporation of India Limited
Plate – A, 6th Floor, Office Block, Tower-2
East Kidwai Nagar, South Delhi
New Delhi 110023, India

Phone: +91 11 2290 0600
Email: [email protected]
Websitehttp://www.railtelindia.com/

Registrar

KFintech Private Limited
   Selenium Building, Tower-B, Plot No 31 & 32,
   Financial District,
Nanakramguda, Serilingampally,
   Rangareddi, Telangana India – 500 032.
Phone: 1-800-3454001
Email: [email protected]
Websitehttps://karisma.kfintech.com/

Lead Manager(s)

  1. ICICI Securities Limited
  2. IDBI Capital Market Services Limited
  3. SBI Capital Markets Limited

Lead Manager Reports

  • Lead Manager Performance Tracker
  • List of IPOs handled by a Lead Manager

Upcomming IPO

Open Demat A/c

Railtel IPO
Railtel IPO

For Any Query Or Complaint Mail At [email protected]

Follw On Twitter

Like On Facebook

Follow On Instagram