RailTel Corporation of India IPO
RailTel Corporation of India IPO — date, price band, lot size & details 2021
RailTel Corporation of India listed on 26 Feb 2021 at ₹109, 16% above the ₹94 issue price.
RailTel is a Mini Ratna public sector company under the Ministry of Railways that runs one of India's largest neutral telecom infrastructure networks. Its optical fibre network covered 59,098 route kilometres on 31 January 2021.
Stock price
RailTel Corporation of India is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 11 November.
- Open 16 Feb 2021
- Close 18 Feb 2021
- Allotment 23 Feb 2021
- Refund/credit 24 Feb 2021
- Listing 26 Feb 2021
Issue summary
The terms of the offer, as filed.
| IPO Dates | 16 to 18 Feb, 2021 |
|---|---|
| Price Band | ₹93 – ₹94 |
| Face Value | ₹10 |
| Lot Size | 155 Shares |
| Issue Size | ₹819.24 Cr |
| Sale Type | OFS only |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 14,570 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 155 shares at the ₹94 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 155 | ₹14,570 |
| Retail (max) | 13 | 2,015 | ₹1,89,410 |
| S-HNI (min) | 14 | 2,170 | ₹2,03,980 |
| S-HNI (max) | 68 | 10,540 | ₹9,90,760 |
| B-HNI (min) | 69 | 10,695 | ₹10,05,330 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 6
- 01Total income rose from Rs 1,021.22 crore in FY2018 to Rs 1,166.01 crore in FY2020.
- 02Profit after tax rose from Rs 134.01 crore in FY2018 to Rs 141.07 crore in FY2020.
- 03The company had no borrowings on 30 September 2020, and net worth was Rs 1,394.63 crore.
- 04The pre-issue P/E was 21.36 at the upper band of Rs 94, based on EPS of Rs 4.40.
- 05Its optical fibre network covered 59,098 route kilometres and 5,929 railway stations on 31 January 2021.
- 06It has an exclusive right of way along 67,415 km of railway track connecting 7,321 stations.
Risks · 6
- 01The whole Rs 819.24 crore issue was offer for sale by the government, so no money went to the company.
- 02Profit after tax was only Rs 45.58 crore in the six months to 30 September 2020, on total income of Rs 553.78 crore.
- 03Profit grew slowly, from Rs 134.01 crore in FY2018 to Rs 141.07 crore in FY2020.
- 04EBITDA fell from Rs 337.15 crore in FY2019 to Rs 322.46 crore in FY2020.
- 05Indian Railways is both the owner and a major customer, and the company has worked under the Ministry of Railways since 2000.
- 06Government holding fell from 100% before the issue to 72.84% after it.
Three years of numbers
All figures in ₹ crore, as reported in the RailTel Corporation of India offer document.
| Metric | 30 Sep 2020 | 31 Mar 2020 | 31 Mar 2019 | 31 Mar 2018 |
|---|---|---|---|---|
| Assets | 2,482.15 | 2,398.10 | 2,227.68 | 2,322.88 |
| Total Income | 553.78 | 1,166.01 | 1,038.27 | 1,021.22 |
| Profit After Tax | 45.58 | 141.07 | 135.36 | 134.01 |
| EBITDA | 146.44 | 322.46 | 337.15 | 282.05 |
| NET Worth | 1,394.63 | 1,369.36 | 1,289.09 | 1,229.18 |
| Reserves and Surplus | 1,073.69 | 1,048.42 | 968.15 | 908.24 |
| Total Borrowing | 0.00 | 0.00 | 0.00 | 0.00 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the RailTel Corporation of India RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
RailTel Corporation of India IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹4.40 | ₹2.84 |
| P/E Ratio (x) | 21.36 | 33.10 |
| Market Cap at Offer Price (₹ Cr) | ₹973.75 | ₹1,508.63 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹94 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
How the company intends to use the proceeds of the issue.
Information about the usage of proceeds from the RailTel Corporation of India IPO will be updated shortly.
About the company
It was set up to modernise the telecom system for train control, operation and safety, and to earn revenue by laying optical fibre along railway tracks. On 31 January 2021 its network covered 59,098 route kilometres and 5,929 railway stations.
It provides telecom services, telecom infrastructure, data centre and hosting services, and ICT projects. It runs data centres in Gurugram and Secunderabad, and takes on projects such as train control systems for Indian Railways and work for central and state governments.
The IPO was Rs 819.24 crore and was entirely an offer for sale by the government, so the company received none of the money.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
RailTel Corporation of India IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
SBI Capital Markets Ltd.
70 issues handledBest listing: Bajaj Housing Finance (+114.3%). Weakest: Kalyan Jewellers India (-15.0%).
ICICI Securities
133 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
IDBI Capital Markets & Securities Ltd.
12 issues handledBest listing: Route Mobile (+104.9%). Weakest: Inox Green Energy Services (-7.7%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of RailTel Corporation of India?
The current Grey Market Premium is ₹15, or 16% over the issue price.
What is the RailTel Corporation of India IPO price band?
₹93 to ₹94, on a face value of ₹10.
When is the allotment?
The basis of allotment is 23 February 2021, with listing on 26 February 2021.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
