About the Company:
Railtel Ltd is an information and communications technology (“ICT”) infrastructure provider and are one of the largest neutral telecom infrastructure providers in India.
Railtel is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways.
Company was incorporated with the aim of modernizing the existing telecom system for train control, operation and safety and to generate additional revenues by creating nationwide broadband and multimedia network by laying optical fiber cable by using the right of way along railway tracks.
As of June 30, 2020, Railtel’s optic fiber network covers over 55,000 route kilometers and covers 5,677 railway stations across towns and cities in India.
Company operates data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways.
company also undertakes various ICT projects for the Indian Railways, central government and state governments, including various train control system projects for Indian Railways.
Services offered by the Company:
Telecom Network Services:
National Long Distance (“NLD”) Services : Company provides digital capacity to carry long distance telecommunication services and includes various tele-services including voice, data, fax, text, video and multimedia.
As part of our NLD services, we offer our enterprise customers with: (i) leased line services; and (ii) MPLS based virtual private network (“VPN”) facilities.
Internet Service Provider (“ISP”) Services: As part of ISP services, Railtel offers enterprise customers Internet leased line services with multiple bandwidth options ranging from 2 MBPS and above across India. Company also offer retail broadband services through our ‘RailWire’ platform.
Managed Data Center and Hosting Services:
Data Centre and Managed Hosting Services: We offer a variety of data centre services including Infrastructure as a Service or IaaS, dedicated hosting, managed services, cloud computing, managed e-Office services, disaster recovery services, Aadhar authentication services , application hosting, bandwidth services and advanced firewall services.
ICT Hardware, Software and Service System Integration Projects: Railtel collaborate with partners and OEMs to undertake ICT hardware implementation, software delivery and digital transformation projects including creation of state wide area network (“WAN”) and its maintenance, data center and facility management services, Wi-Fi projects, city surveillance projects, laying of state wide fiber optic network and its maintenance.
Management Team:
- Mr. Puneet Chawla (Designation: Chairman and Managing Director)
- Mr. Sanjai Kumar (Designation: Director (Network, Planning and Marketing)/ Whole-time Director)
Positives for the Company:
Among the largest neutral telecom infrastructure providers in India with pan-India optic fiber network.
Railtel is one of the largest neutral telecom infrastructure providers in India. As of June 30, 2020, company had exclusive right of way along 67,415 route kilometers connecting 7,321 railway stations for laying optical fiber cable.
Company has over 55,000 route kilometers of optical fiber cable network and have connected 5,677 railway stations across towns and cities in India as of June 30, 2020.
Implementing partner for the Bharat Net project.
Railtel is also an implementing partner for the Bharat Net project to create optical fiber cable based broadband infrastructure in laying optical fiber cable across 36,000 gram panchayats in India.
As of June 30, 2020, we had completed laying 24,037 kilometers of optical fiber cables and as of June 30, 2020 have connected over 6,500 gram panchayats.
Company has also been awarded a number of projects that we are currently implementing and executing. These include the Kerala Fiber Optic Network project where we are a part of the consortium that involves provision of scalable and resilient optic fiber across Kerala.
Key partner to the Indian Railways in digital transformation.
Railtel serve as a key network for the Indian Railways and provides a variety of services to the Indian Railways.Company is also working with the Indian Railways to transform railway stations into digital hubs by providing public Wi-Fi at railway stations across India.
As on June 30, 2020, 5,677 railway stations were live with ‘RailWire’ Wi-Fi and we recorded over 14 million unique users per day in Fiscal 2020.
RailWire recorded an average of 29 million user logins per month in Fiscal 2020, and an average of 8200 TB of aggregated data consumption per month in Fiscal 2020.
Plans to Expand services outside India.
Company is currently in the process of bidding for project in Africa that include supply, delivery, installation, testing and commissioning of goods and service for digital literacy in public primary schools in Kenya.
Company also has plans to leverage our expertise of working and developing projects for the Indian Railways, particularly modernizing and digitizing the existing networks, to other projects in Bangladesh and Jordan where we are currently evaluating projects.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | 30th Sept 2020 |
|---|---|---|---|---|
| Revenue | 1021.2 | 1038.2 | 1166.0 | 553.7 |
| Net Profit | 134.0 | 135.3 | 141.0 | 45.5 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 16th February 2021 |
| Issue Closes on:. | 18th February 2021 |
| Issue Price | Rs.93 -94 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 155 shares |
| Minimum Investment | Rs.14,570 |
| Issue Constitutes | 27.15% |
| Issue Size | Rs.819 cr ($110 million) |
| Market Cap | Rs. 3016 cr ($ 407 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 8,71,53,369 |
| Equity Shares Prior to the Issue | 32,09,38,407 |
| Equity Shares after the issue | 32,09,38,407 |
Also Read: Upcoming IPO’s in India
Important Dates:
| Finalization of Basis of Allotment | On or Before 23rd February 2021 |
| Initiation of Refunds | On or Before 24th February 2021 |
| Credit of Equity Shares: | On or Before 24th February 2021 |
| Listing Date: | On or Before 26th February 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 05:00 PM) | Shares Offered | 16th Feb | 17th Feb | 18th Feb |
|---|---|---|---|---|
| QIB | 1,73,69,237 | 0.00 | 2.96 | 65.14 |
| NII | 1,29,98,006 | 0.75 | 2.63 | 73.26 |
| Retail | 3,03,28,680 | 4.97 | 10.53 | 16.8 |
| Employee | 5,00,000 | 0.81 | 1.85 | 3.35 |
| TOTAL | 6,11,95,923 | 2.63 | 6.64 | 42.40 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.40 | 21.36 | 10.30% | 42.67 |
| Check IPO Allotment Status: |
|---|
KfinTech Website : http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
Also Read: IRCTC Ltd | Rail Vikas Nigam Ltd
| Company Contact Info: |
|---|
| RailTel Corporation of India Limited Plate – A, 6th Floor Office Block, Tower – 2 East Kidwai Nagar, South Delhi New Delhi 110023, India. Telephone: +91 11 2290 0600; E-mail: cs@railtelindia.com; Website: www.railtelindia.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited (formerly known as Karvy Fintech Private Limited) Selenium Tower-B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi 500 032, Telangana, India Telephone: +91 40 6716 2222 E-mail: einward.ris@kfintech.com Website: www.kfintech.com |
