RailTel IPO opens the following day: 10 issues to know sooner than you subscribe


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RailTel had an exclusive right of way along 67,415 route kilometers connecting 7,321 railway stations for laying optical fiber cable
RailTel had an strange correct of map along 67,415 route kilometers connecting 7,321 railway stations for laying optical fiber cable

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. Updated: 15 Feb 2021, 12: 28 PM IST



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  • RailTel IPO is is fully an offer-for-sale
  • The authorities will promote 87.15 million shares, or a 27.16% stake on this subject

The IPO of RailTel Company of India opens for subscription the following day and the narrate-flee company has mounted a label band of 93-94 a portion for its initial portion-sale. RailTel IPO will shut on February 18. RailTel, which gives broadband telecom and multimedia network across the country, is one in all the largest neutral telecom infrastructure providers in the country proudly owning a pan-India optic fiber network on strange Upright of Way (ROW) along Railway be conscious.

Here are 10 issues to know about RailTel IPO:

1) The lot size in RailTel IPO is 155 and on the upper label band of 94, the utility cash could be 14,570

2) In step with brokerages, the portion allocation in RailTel IPO is more doubtless to be finalised on February 23 and checklist could well unprejudiced happen on February 26.

3) ICICI Securities, IDBI Capital, SBI Capital Markets are merchant bankers to the subject.

4) The initial public offer (IPO) is fully an offer-for-sale. Thus company is now not going to secure any fund from the IPO.

5) The authorities will promote 87.15 million shares, or a 27.16% stake on this subject. The authorities plans to desire a diminutive bit 819 crore.

6) Half of of the subject is reserved for licensed institutional buyers, 35% for retail merchants, 15% for non-institutional bidders.

7) KFin Technologies Inner most Restricted is the registrar of RailTel IPO and could well unprejudiced station up portion allocation and refund.

8) For the three hundred and sixty five days ending March 2020, the corporate had reported a rep earnings of 141 crore as when when put next with 135 crore in the outdated fiscal.

9) The risk involves faulty authorities policies and guidelines, lower spending from governments and competition from deepest operators.

10) "RailTel has reported a stable monetary efficiency over FY18-20. It reported a 7.5% CAGR upward push in top-line to 1,128 crore in FY20. Change from telecom services and products, which contributed round 67.7% to the tip-line elevated by 4.3% CAGR, while industry from projects (contributing moderate 30.9%) elevated by 13.8% CAGR all over FY18-20," Resolution Broking said in a show camouflage. The brokerage has a subscribe score on the subject.

"RailTel is profitable since FY07 and paid dividend since FY08. Average dividend payout stood at round 40% over FY18-20. Networth is certain and consistently growing since incorporation. The company is rep debt free and is funding its operations with inside accruals since FY13."

"There don't seem to be any listed chums, having identical running mannequin. At the upper label band of Rs. 94 per portion, the corporate’s portion is valued at a FY20 P/E loads of of 15.8x (to its restated EPS of Rs. 5.9)," it added.

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