All you need to know about

RailTel Corporation of India Ltd IPO

Issue Details
Issue Amount : ` 819.2 Crores
Total shares for sale : Upto 87,153,369 Equity Shares
Issue Period : Feb 16, 2021 - Feb 18, 2021
Face Value : �` 10 per share
Price Band : ` 93 to ` 94
Lot Size : �155 shares and in multiple thereafter
Registrar: Kfin Technologies Private Limited
Source : BRLM

Offer Breakup
Category Allocation Issue size Issue size
(Shares) (` in crore)

Lower Band Upper Band

QIB 50% 43,326,683 402.9 407.3

NIB 15% 12,998,006 120.9 122.2

Retail 35% 30,328,680 281.1 285.1

Total 100% 86,653,369 804.9 814.6

Source : BRLM. Employee portion excluded in table

IPO timeline `
Issue opens on:
Tuesday, Feb 16 2021 `

16
Issue closes on:
Thursday, Feb 18 2021

FEBRUARY

23rd Finalization of 24th Refunds/Unblocking

Feb 2021 basis of allotment Feb 2021 ASBA fund

25th Credit of equity 26th Trading

FEB 2021 shares to DP account FEB 2021 commences

Source : BRLM, Dates are tentative

The objective of the offer

01 to carry out the disinvestment of 87,153,369 Equity Shares by the Selling

Shareholder constituting a share of the Company’s paid up Equity Share
capital.

02 to achieve the benefits of listing the Equity Shares on

the Stock Exchanges.

Additionally, RailTel expects to achieve the benefits of listing

of their Equity Shares on the Stock Exchanges and
enhancement of their Company’s brand name and creation of
a public market for their Equity Shares in India.
Source : RHP and DRHP

`
About the company
They are an information and communications technology (“ICT”)
infrastructure provider and are one of the largest neutral telecom
infrastructure providers in India (Source: CRISIL Report). They are 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. RailTel 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.

As of Jan 31, 2021, their optic fiber network covers over 59,098 route
kilometers and covers 5,929 railway stations across towns and cities
in India. The transport network is built on high capacity dense
wavelength division multiplexing (“DWDM”) technology and an Internet
protocol/ multi-protocol label switching (“MPLS”) network over it to
support mission critical communication requirements of Indian
Railways and other customers. They offer a diverse range of services
namely Telecom Network Services, Telecom Infrastructure services,
Managed Data Center and Hosting services and Projects (System
Integration Services).
Received an award in the ‘Best Social Wi-Fi Project’ category at the My
India Wi-Fi India Summit and Awards 2018.

Received an award at the Digital Innovation and Cyber Security Summit

2019 organized by Department of Information Technology and
Electronics, Government of Haryana.

Received Governance Now PSU award 2020 in Digital PSU Category.

Source : RHP and DRHP
Strengths
Among the largest neutral
telecom infrastructure
providers in India with a
pan-India optic fiber
network
Experience in executing
projects of national
importance with a robust
pipeline of projects
Source : RHP and DRHP
Risks
Telecom Industry is highly
regulated and changes in laws,
policy or regulations could
impact business adversely
Adverse developments in
legal proceedings they are
involved in could impact
business
Source : RHP and DRHP
Diversified portfolio of
services and solutions
Strong track record of
financial performance
Substantial portion of revenue
comes out of PSU customers.
Govt decisions and policy
changes can impact
negatively
Internet security concerns
and illegal distribution by
third-parties could adversely
affect their broadband
internet access services
Key partner to the Indian
Railways in digital
transformation
Experienced senior
management and
committed team
Inability to update to
modern telecom
technology standards
will impact business
Loss of Key suppliers or
their failure to deliver
equipment or perform
services in a timely or
satisfactory manner will
impact business
Important Financials Data
Their revenue from operations have grown at a CAGR of 7.47% from ₹ 976.78
Cr in Fiscal 2018 to ₹ 1,128.05 million in Fiscal 2020 and in Fiscal 2019, they
had the lowest gearing ratio among Key Telecom Companies in India.

They have been profitable since Fiscal 2007 and have consistently declared
and paid dividends since Fiscal 2008. Their net profit margin of 12.50% in
Fiscal 2020 was the highest among the Key Telecom Companies and Key
IT/ICT Companies in India while their operating profit margin was the
highest among the Key IT/ICT Companies in India
Source : CRISIL Report

(in ` Crore)
HY Apr - Sep FY March FY March FY March
2020 2020 2019 2018

Total Assets 2,482.15 2,398.1 2,227.67 2,322.88

Total Revenue 537.4 1,128.05 1,003.27 976.78
from operations

EBITDA
146.44 322.46 337.15 282.05
Profit after Tax 45.58 141.07 135.36 134.00

Source : RHP

Particulars (in INR Crore) FY20 FY19 FY18

Revenue from Operations 1,128.05 1,003.27 976.78

Revenue Growth (%) 12.44 2.71 -1.03

EBITDA 322.46 337.15 282.05

Net Profit for the period 141.07 135.36 134.00

Net Profit as % to Revenue 12.51 13.49 13.72

Basic EPS (Rs ) 4.40 4.22 4.18

RONW (%) 10.3 10.5 10.9

Source : RHP.

The Company does not have any listed industry

peers in India.
Source : RHP
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company's initial growth story

Based on this financial year’s IPO data, it can be conveniently said that the
country represents a huge appetite for Initial Public Offers (or IPOs). In the
period April 2020 to Jan 2021, the country’s stock exchanges (both NSE and
BSE combined) witnessed 19 IPOs and raised proceeds worth Rs 34,003.78
crores in total. Some of the successful IPOs of 2020 were SBI Cards,
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others. In December some of the most successful IPO launches were for
Burger King which saw a listing day gain of 130.67% and Mrs Bectors which
saw a listing gain of 106.79%. The same fervour continued in January with
4 back to back IPOs including major IPOs of Indigo paints and IRFC.
Although IRFC lost some steam, Indigo Paints posted a listing day gain of
109.31%
Last 10 IPO Performances

Date IPO Name Issue Size Retail Total Issue Price List Price Listing CMP on Current Gains
(` in crs) Subscription Subscription (in ₹) (in ₹) Gains(%) 8/2/2021 (in ₹) (%) 8-02-21

28-Jan-21 Stove Kraft Ltd 412.63 26.04 18.03 385 445.95 15.83 452.8 17.61

25-Jan-21 Home First Finance 1153.72 6.59 26.66 518 527.4 1.81 536.5 3.57

22-Jan-21 Indigo Paints Ltd 1170.56 6.5 54.84 1490 3118.65 109.31 2675.2 79.54

20-Jan-21 Indian Railway Finance Corp 4633 1.59 1.16 26 24.85 -4.42 25.75 (0.96)

23-Dec-20 Antony Waste Handling Cell Ltd 300.53 16.55 15.04 315 407.25 26.29 322.3 2.32

17-Dec-20 Mrs Bectors Food Specialities Ltd 540.54 29.33 198.02 288 501 106.79 410.25 42.45

4-Dec-20 Burger King India Ltd 796.5 68.15 156.65 60 115.35 130.67 150.7 151.17

11-Nov-20 Gland Pharma 6479.55 0.24 2.06 1500 1710 13.4 2321.25 54.75

22-Oct-20 Equitas Small Finance 517.6 2.08 1.95 33 31 -6.06 47.2 43.03

7-Oct-20 Likhitha Infra 61.2 23.71 9.51 120 130 8.42 210.65 75.54

Source : Moneycontrol

For more details refer offer documents on sebi www.sebi.gov.in

The securities quoted are exemplary and are not recommendatory. Such representations are not indicative of future results.
Source of statistical information, charts, graphs etc – RHP, DRHP, Moneycontrol.

Investments in securities market are subject to market risks, please read all the related documents carefully before investing. SEBI Registration no.-INZ000240532, BSE-6707,
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