RailTel Company of India's preliminary public offering is be the 2nd public utter from the authorities and the seventh IPO of the year 2021.
Indian Railway Finance Company, Indigo Paints, Dwelling First Finance Firm and Range Kraft accept already listed on the bourses. Brookfield India REIT will manufacture its market debut on February 17 and Nureca opened its public utter on February 15.
ICICI Securities, IDBI Capital Markets & Securities and SBI Capital Markets are the lead managers to the problem.
Listed here are 10 things to know sooner than subscribing to RailTel Company of India IPO:
1) The IPO
The public utter comprises as much as eight,71,53,369 equity shares of the face cost of Rs 10 each and every and is a total offer for sale by the Authorities of India.
Merchants can affirm for no much less than 155 equity shares and in multiples of 155 thereafter.
2) Opening and shutting dates
The public utter will commence for subscription on February 16 and can shut on February 18. The utter might perhaps perhaps even commence for a day on February 15 for anchor investors.
The allotment allocation will happen round February 23 followed by unblocking of funds from ASBA sage on February 24. Eligible investors will accept shares on February 24 or 25 and the stock will accept listed on February 26.
3) The tag band
The corporate and the authorities, in session with merchant bankers, accept fixed the rate band at Rs 93-94 a allotment. In the larger tag band, the minimum application dimension for retail investors comes to Rs 14,570.
4) Fund raising
The authorities goes to enhance Rs 819.24 crore by promoting a stake in RailTel.
5) Objects of Discipline
The corporate will now not receive any proceeds from the offer and the funds might perhaps perhaps presumably be obtained by the promoting shareholder, which is the authorities.
The major object of the offer is to manufacture the disinvestment of 8,71,53,369 equity shares held by the Authorities of India.
Nureca IPO: Top 10 things to know sooner than subscribing the problem
6) Firm profile
RailTel Company is an files and communications skills (ICT) infrastructure provider and regarded as one of the largest neutral telecom infrastructure providers within the country, proudly owning a pan-India optic fibre community on extraordinary acceptable of design (ROW) alongside railway tracks. It is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned (100 p.c) by the Authorities of India and below the administrative alter of the Ministry of Railways.
The corporate used to be incorporated in September 2000 to modernise the telecom system for educate alter, operation and security and to generate extra revenues by creating nationwide broadband and multimedia community by utilizing essentially the most attention-grabbing of design alongside railway tracks.
As of January 2021, its optical fibre community coated 59,098 route kilometers and 5,929 railway stations. It operates data centres in Gurugram, Haryana and Secunderabad, Telangana to host and collocate well-known applications for customers at the side of the Indian Railways.
As effectively as to strategic and demanding community infrastructure companies, RailTel also undertakes diversified ICT projects for the Indian Railways, the Centre and relate governments, at the side of diversified educate alter system projects for Indian Railways.
The corporate presents a various range of companies all over industries and its portfolio is also broadly categorized as telecom community companies, telecom infrastructure companies, managed data center and web hosting companies and projects (system integration companies).
The corporate is good by of conducting a challenge in Haryana for a relate company, where it's miles required to offer, set up and commission IP-MPLS and MPLS routers at diversified sites below the relate WAN and likewise offer, set up and commission switches, servers and firewalls and undertake facility administration companies for administration of the conventional IT infrastructure.
The corporate is working on a sort of projects. These encompass the Kerala Fibre Optic Network challenge where the company is a fraction of the consortium that entails provisions of scalable and resilient optic fibre all over Kerala.
7) Competitive strengths
RailTel believes that the company has the following aggressive strengths:
a) It is among the largest neutral telecom infrastructure providers in India with pan-India optic fiber community.
b) It presents a diversified portfolio of ICT companies and alternate suggestions ,at the side of MPLS-VPN, leased lines companies, TPaaS, eOffice companies and data center companies, natty community hardware system integration, utility and digital companies.
c) It is a key associate to the Indian Railways in digital transformation.
d) It has skills in executing projects of national importance, with a sturdy pipeline of projects.
e) The corporate has a consistent sage of monetary performance and development.
f) RailTel is professionally managed, with sturdy company governance and senior administration team with foremost enterprise skills.
8) Recommendations
a) The corporate intends to continue to lengthen telecom companies and deploy most unusual technologies.
b) It intends to additional diversify companies and alternate suggestions with a focal point on Indian Railways.
c) It intends to lengthen companies outside India.
9) Financials
RailTel has been profitable since fiscal 2007 and has paid dividends since fiscal 2008. Its operations accept been funded fully by interior accruals since fiscal 2013 and is a debt-free company.
Its earnings from operations has grown at a CAGR of 7.47 p.c at some stage in FY18-FY20 and accept been at Rs 537.4 crore within the six months ended September 2020. In FY20, it reported the absolute top gather profit margin among key telecom corporations and key IT/ICT corporations in India, with a gather profit margin of 12.50 p.c while gather profit margin used to be 8.48 p.c within the six months ended September 2020.
It ranked first in phrases of running profit margin among essentially the main IT/ICT Companies in India in FY20.
10) How does it stack up against peers
Right here is an review of essentially the main telecom carrier corporations in India, which encompass Bharti Airtel, BSNL, Mahanagar Cell phone Nigam (MTNL), RailTel, Reliance Jio Infocomm, Tata Communications and Vodafone Concept:
An review of essentially the main IT and ICT corporations in India, which encompass HCL Infosystems, RailTel, Sify Applied sciences, Tata Communications and Telecommunications Consultants India (TCIL) follows;
Puneet Chawla is the Chairman and Managing Director of the company since December 2018. He is an IRSSE officer (batch of 1985). Sooner than joining RailTel, he held positions equivalent to Govt Director (Security) within the Railway Board of Ministry of Railways, Authorities of India, Divisional Railway Manager, Ajmer, Chief Venture Manager, Indian Railway Venture Management Unit, Usual Manager, Rail Vikas Nigam Miniature.
Sanjai Kumar is the Director (Network, Planning and Marketing) and complete-time director. Anand Kumar Singh is the Director (Finance) apart from to a total-time director and Chief Monetary Officer. He has over 33 years of skills in finance and accountancy. Sooner than joining the company, he used to be the executive director (finance) at IRCON Global and likewise labored in Bokaro Vitality Supply Firm and Damodar Valley Company.
Umesh Balonda and Vinay Srivastava are the fraction–time authorities director and nominee director, while Rashmi Jain and Chinnasamy Ganesan are the fraction–time (non–official) director apart from to neutral directors.
