RailTel Corporation of India IPO opens for subscription today and the state-owned company has set a price band of ₹93-94 one share for your initial sale of shares. RailTel’s IPO will close on February 18. RailTel, which provides broadband telecommunications and multimedia networks across the country, is one of the largest neutral telecom infrastructure providers in the country owning a fiber optic network across India on the right of way (ROW) exclusive. Railway.
Here are 10 things to know about the RailTel IPO:
1) Lot size at RailTel’s IPO is 155 and in the upper price band of ₹94, the application money will be ₹14,570
2) According to brokerages, the share allocation in RailTel’s IPO is likely to be finalized on February 23rd and listing will take place on February 26th.
3) ICICI Securities, IDBI Capital, SBI Capital Markets are the commercial bankers of the issue.
4) The initial public offering (IPO) is entirely an offer to sell. Therefore, the company will not receive any funds from the IPO.
5) The government will sell 87.15 million shares, or a 27.16% stake in this issue. The government plans to raise a little ₹819 crore.
6) Half of the issuance is reserved for qualified institutional buyers, 35% for retail investors, 15% for non-institutional bidders.
7) KFin Technologies Private Limited is the registrar for RailTel IPO and will manage the allocation and redemption of shares.
8) For the year ending March 2020, the company had reported a net profit of ₹141 crore compared to ₹135 million rupees in the previous fiscal year.
9) Risk includes unfavorable government policies and regulations, lower government spending, and competition from private operators.
10) “RailTel has reported stable financial performance during fiscal year 18-20. It reported a 7.5% CAGR increase in revenue. ₹Rs 1,128 crore in fiscal 2020. Telecom services business, which contributed around 67.7% to gross revenue, increased by 4.3% CAGR, while project business (which contributed a 30.9% average) increased by a 13.8% CAGR during fiscal year 2018-20, “Choice Broking said in a note. Brokerage has an underwriting rating on the issue.
“RailTel has been profitable since fiscal 2007 and has paid dividends since fiscal 2008. Average dividend payment was around 40% during fiscal 18-20. Networth is positive and growing steadily since its incorporation. company is net debt free and is financing its operations with internal accruals since fiscal year 2013. “
“There are no listed pairs that have a similar operating model. In the higher price band of Rs. 94 per share, the company’s stock is valued at a FY20 P / E multiple of 15.8x (at its updated EPS of Rs. . 5.9), “he added.
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