Railtel Corporation of India Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹94
Per ShareLot Size
155 Shares
Minimum Investment
₹14,570
Issue Size
₹810.526 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Railtel Corporation of India Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
72.84%
Issue Type
Book Building
ISIN
INE0DD101019
About the Company
Railtel Corporation of India Ltd is an information and communications technology ("ICT") infrastructure provider and are one of the largest neutral telecom infrastructure providers in India (Source: CRISIL Report). It 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. It was incorporated on September 26, 2000 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.
Industry Overview
India's GDP has increased at a CAGR of 7% from Rs. 87 trillion in Fiscal 2012 to Rs.140 trillion in Fiscal 2019. As per the Central Statistics Office ("CSO"), India's GDP growth increased in the second half of Fiscal 2018 and was 7.1% in Fiscal 2018. GDP in the fourth quarter of Fiscal 2020 grew at a rate of 3.1% compared with 4.1% in the third quarter of Fiscal 2020, resulting in the full-year growth estimate to 4.2% compared with 6.1% in Fiscal 2019. The Indian telecom services industry can be broadly segregated into wireless, wireline and enterprise services. Wireline services are traditional landline calling services and wired broadband service. Wireless service includes mobile calling, short messaging service ("SMS"), wireless broadband, video conferencing service, triple play service, and over-the-top ("OTT") platforms. Enterprise services provide network connectivity across locations and users in an organization.
Company History
"RailTel Corporation of India Limited" was incorporated as on September 26, 2000, as a public limited company under the Companies Act, 1956, and the certificate of incorporation was issued by the Assistant Registrar of Companies, N.C.T. of Delhi and Haryana. It received its certificate for commencement of business from the Deputy Registrar of Companies, N.C.T. of Delhi and Haryana on October 9, 2000.
Products & Services
- Company is into information and communications technology ("ICT") infrastructure provider
Growth Strategy
- Continue to expand telecom services and deploy latest technologies
- Further diversify services and solutions with a focus on Indian Railways
- Expanding services outside India
Customer Base
Railways
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 87,153,369 equity shares of face value of Rs. 10 each ("equity shares") of Railtel Corporation of India Limited (The "company" or the "issuer") through an offer for sale by The President of India, acting through The Ministry of Railways, Government of India (The "selling shareholder"), for cash at a price of Rs. 94 per equity share (including a share premium of Rs. 84 per Equity share) (the "offer price"), aggregating to Rs. 819.24 crores (the "offer"). Offer price and Anchor investor offer price: Rs. 94 per equity share of face value of Rs. 10 each. The Offer price is 9.40 times the face value of equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Among the largest neutral telecom infrastructure providers in India with pan-India optic fiber network
- Diversified portfolio of services and solutions
- Key partner to the Indian Railways in digital transformation
- Experience in executing projects of national importance with a robust pipeline of projects
- Strong track record of financial performance
- The telecommunications industry in India is highly regulated and changes in laws, regulations or governmental policy could potentially adversely affect our business, prospects, financial condition, cash flows and results of operations.
- The Company is dependent on and derive a substantial portion of revenue from PSU customers, the Indian Railways and other GoI entities as well as State Governments and our relationship with GoI entities and State Governments exposes to risks inherent in doing business with them, which may adversely affect our business, results of operations and financial condition.
- If Company do not continue to provide telecommunications or related services that are technologically up to date, it may not remain competitive, and business, prospects and results of operations may be adversely affected.
- Company is involved in certain legal proceedings, any adverse developments related to which could materially and adversely affect our business, reputation and cash flows.
- If Company cannot scale business or manage businesses effectively or are unable to successfully implement strategies, the quality of services and results of operations could be adversely affected.