IPO Details
Below are key details about the IPO of the Company
- IPO Start Date – 16th Feb 2021
- IPO End Date – 18th Feb 2021
- IPO Price – INR 94
- IPO Lot Size – 155
- Minimum investment required – INR 14,570
English Video
Hindi Video
Business Details
Railtel Corporation is Government of India enterprise. It is one of the largest telecom infrastructure provider Companies in India. The infrastructure is mainly used by Railways. It also has Optical Fibre networks along with Railway lines. Thus it covers area of 58,742 route kilometers and covers 5,848 railway stations. So it can be assumed to cover most of Rural as well as Urban area.
The Company aims to provide below services using the vast infrastructure and coverage area it has
- HD Video Conferencing services
- Data Center Services
- Railwire Broadband
- Leased Line
- VPN or Virtual Private Network
- Internet leased line
- Managed Data Services
- Consultancy Services
- Rack and Space collocation
- Tower Collocation
- NLD for Video carriage
- Signalling Services
Some of the key projects by the Company are
- Free Wifi on Railway Stations in technology partner ship with Google. This service is live on many platforms. The service uses Railtel Broadband as mentioned above
- Content on Demand in trains and platforms. This service is not yet live. It will deliver movies, songs etc as per user demand and will be live once trial is over for the services
- Railway Display Network is service which provides display screens on foot bridges and other places for Railway users. They will also show ads which will be revenue generator for the Company.
- National Optical fibre network plans to provide broadband connectivity to all Panchayats in India with 100 MBPS speed. As of now it is live in 6,500 village panchayats and plan is to accommodate all 2.5 lakh panchayats.
- Connecting the North Eastern state districts with sub divisional offices.
Financial Snapshot
Below are key financials of the Company for year ending 2020
- Total Assets – 23,981
- Total Income – 11,660
- Profit for year – 1,410
IPO Subscription Status
Below is IPO Subscription status of the Company. I will be updating this section with time.
- QIB – 0.00 times
- NII – 0.32 times
- RII – 3.06 times
- Employee – 0.21 times
- Total Subscription is 01.59 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
RailTel Corporation is Internet and Connectivity infrastructure provider Company. These two are futuristic technologies as there is ample scope of improve connectivity in India. With vast range of optical fiber network covering village as well as urban areas it has an edge over other similar service providers.
Having said that the only concern market will have is it is Government of India enterprise. The mini ratna company may not get good subscription due to this fact. It will be interesting to note how well the Company is received by the Investors.
You should read the Make Money with IPO article before planning to invest in this Company as it may not give listing gain or may have slight listing gains.