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Hot Deal Railtel IPO - Things to Know Before Investing

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adrishya
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Railtel IPO - Things to Know Before Investing

About the Company
Incorporated in 2000, RailTel Corporation is a public sector business unit, wholly owned by the Government of India (GOI) and administrated by the Ministry of Railways. It is an Information and Communication Technology (ICT) infrastructure provider company. The company was established with the key objective to modernize telecom infrastructure and today, it is one of the largest telecom infrastructure providers.

RailTel uses the latest technology like high dense wavelength division multiplexing (DWDM) and multi-protocol label switching (MPLS) network. The company has data centers in Haryana, Gurugram, Secunderabad, and Telangana.

Company Promoters:
The President of India, acting through the Ministry of Railways is the promoter of the company.

RailTel IPO Details

IPO Opening Date Feb 16, 2021
IPO Closing Date Feb 18, 2021

IPO Price ₹93 to ₹94 per equity share
Market Lot 155 Shares
Min Order Quantity 155 Shares

Retail Portion is 35% – minimum order value Rs. 2l

Deal Wiki

Things to Know Before Investing in RailTel IPO

Here is a quick look at the financial performance of RailTel Corporation of India Limited over the last seven years

https://cdn0.desidime.com/attachments/photos/665276/medium/12554864mu60Md.jpg?1613195796

Strengths of RailTel Corporation of India Limited

  • RailTel is among the largest neutral telecom infrastructure providers in India with a pan-India optic fiber network
  • The company offers a diversified portfolio of ICT services and solutions including MPLS-VPN, leased lines services, TPaaS, e-Office services, data center services, large network hardware system integration, and software and digital services.
  • RailTel serves as a key partner to the Indian Railways in digital transformation. It provides a range of services to the Railways including the implementation of an MPLS data network for integrated payroll and accounting system, unreserved ticketing system, freight operations information system, and coaching operations information systems.
  • The company has a track record of executing projects of national importance and boasts of a robust pipeline of projects.
  • The company has been consistently profitable since 2007 and has a positive net worth since its incorporation.
  • RailTel is professionally managed with strong corporate governance and a senior management team with significant industry experience.

Weaknesses of RailTel Corporation of India Limited

  • RailTel relies heavily on the Indian Railways, Government of India, and PSUs for most of its business.
  • The ICT infrastructure industry involves high fixed costs and capital outflow.
  • Since the telecom sector is prone to regular upgrades and the introduction of new technologies, RailTel needs to constantly keep itself relevant by inducing the required changes.
  • The telecom industry is highly competitive and RailTel needs to be at the top of its game at all times. Any slip-up can be costly.
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Missing Deal Lieutenant
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BAT_MAN

RailTel Corporation of India Limited IPO

  • IPO Opening Date Feb 16, 2021
  • IPO Closing Date Feb 18, 2021
  • Issue Type Book Built Issue IPO
  • Face Value ₹10 per equity share
  • IPO Price ₹93 to ₹94 per equity share
  • Market Lot 155 Shares
  • Min Order Quantity 155 Shares
  • Max Order Quantity 13 lots or 2015 Shares
  • Listing At BSE, NSE
  • Issue Size 87,153,369 Eq Shares of ₹10 (aggregating up to ₹819.24 Cr)
  • Offer for Sale 87,153,369 Eq Shares of ₹10 (aggregating up to ₹819.24 Cr)
Missing Tech Guru
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drupal

IRFC IPO ke flop show ke baad pesh hai RaiTel IPO

Missing Critic
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guest_999

Railtel has potential no doubt but still wait for the last day as market is really overpriced now.

Missing Deal Lieutenant
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adrishya
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MrKool_JJ wrote:

Yes, mostly I will.
Abi to ekdum garam sector hai ye plus GMP is also very good.
We still have 1 week to finalize so hope for the best smile
#AA_JJ sunglasses

Bas irfc ki tarah thanda na pad jaaye ye

Missing Deal Cadet
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Bk100

Aviod.

In telecom sector nobody makes money in long run as technology changes fast and obsolescence is very high. And above all its psu stock.

Missing Critic
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guest_999
Bk100 wrote:

Aviod.

In telecom sector nobody makes money in long run as technology changes fast and obsolescence is very high. And above all its psu stock.

It is not telecom company, railtel is a broadband provider.

Missing Deal Cadet
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Bk100
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guest_999 wrote:

It is not telecom company, railtel is a broadband provider.

That too relates to telecom. Technology is fast changing in this field. Govt officers and govt are not very fast accept change s. Bsnl mtnl are best example s

Missing Critic
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guest_999
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Bk100 wrote:

That too relates to telecom. Technology is fast changing in this field. Govt officers and govt are not very fast accept change s. Bsnl mtnl are best example s

Technically yes but practically at least in this country telecom company denotes those having mobile/voice data services. Railtel will not compete against jio or airtel or vodafone in mobile connections but broadband connections & there are many areas where its reach is more than its competitors. You probably haven’t heard about its performance in Kerala where in many areas it is the leading broadband service provider(there it resells its service to local cable broadband operators).

Missing Admin
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Admin
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guest_999 wrote:

Technically yes but practically at least in this country telecom company denotes those having mobile/voice data services. Railtel will not compete against jio or airtel or vodafone in mobile connections but broadband connections & there are many areas where its reach is more than its competitors. You probably haven’t heard about its performance in Kerala where in many areas it is the leading broadband service provider(there it resells its service to local cable broadband operators).

thanks for sharing .. good info sunglasses

Missing Deal Subedar
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cupidon

Grey market premium is currently Rs. 45/- a must apply , only hitch is it is a sarkari company, PSUs do not enjoy a higher valuation as govt keeps meddling in their affairs, with OFS, mergers, stake sales etc etc, all said and done, it is good issue for listing gains , more so if you are a long term investor, will be heavily subscribed for sure

Missing Deal Cadet
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SastaRaju

A market crash is imminent , too much bull run after corona not sustainable

Whatever stocks were brought in March April 2020 has more than doubled within less than1 year

Missing Deal Cadet
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Apun-hi-bhagwan-hai

Totally Avoiding.
Requested railtel to for a broadband connection for 3 months. their employees sucks no one wants to take new customers because they will get the salary anyway.
Called Airtel for broadband, the seller used his 700mtr fiber wire on his cost so he can give connection to me(before covid airtel used to cost 1300 for 100mbps and railtel @ 670rs). This is a difference b/w govt and private, govt employees don’t care bcoz the govt won’t cut the salary even after complaints. Max to max transfer to another location.
So its a no no for me. confused

Missing Deal Captain
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bobby_123

During FY18-20, RailTel’s revenue grew at a compounded annual growth rate of 7.5 per cent at Rs 1,128 crore in FY20. Over the same period, its Ebitda grew at a CAGR of 12.4 per cent at Rs 334 crore in FY20. Net profit rose 2.6 per cent CAGR during the period to Rs 141 crore in FY20. The operating margin was above 28 per cent while the dividend payout ratio was 46-49 per cent during the period.

Read more at:
https://economictimes.indiatimes.com/markets/ip...

Missing Deal Cadet
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Razerist
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guest_999 wrote:

Technically yes but practically at least in this country telecom company denotes those having mobile/voice data services. Railtel will not compete against jio or airtel or vodafone in mobile connections but broadband connections & there are many areas where its reach is more than its competitors. You probably haven’t heard about its performance in Kerala where in many areas it is the leading broadband service provider(there it resells its service to local cable broadband operators).

We had 2 railtel connection for about 6 months then decided to terminate. They were heavily dependent on cable tv providers and their customer service is bullshit. They have like 2-3 person from railtel to cover the entire city. I never had a connection as bad this one even though we were in the middle of the city. I’m talking about the situation 1and half years ago and have no idea what are they upto.

Missing Deal Subedar
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maddydilip
drupal wrote:

IRFC IPO ke flop show ke baad pesh hai RaiTel IPO

They are giving Rs 1 dividend.. Also share price reaching near ipo price.. No loss..
Similar will be in case of railtel.Even if share price decreases dividends will compensate in Long run.
Buy for risk free lifelong income.

Missing Tech Guru
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drupal
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maddydilip wrote:

They are giving Rs 1 dividend.. Also share price reaching near ipo price.. No loss..
Similar will be in case of railtel.Even if share price decreases dividends will compensate in Long run.
Buy for risk free lifelong income.

I hope for the best for RailTel
Not expecting IRFC like preformance

Missing