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
IPO timeline
Issue opens on: Tuesday, Feb 16 2021
Issue closes on: Thursday, Feb 18 2021
23rd FEB 2021 : Finalization of basis of allotment
25th FEB 2021 : Refunds/Unblocking ASBA fund
26th FEB 2021 : Credit of equity shares to DP account
24th FEB 2021 : Trading commences
Offer Breakup
Anchor: 2,59,96,010 Shares = 244.36 Crores
QIB: 1,73,30,673 Shares = 162.91 Crores
NII: 1,29,98,006 Shares = 122.18 Crores
RII: 3,03,28680 Shares = 285.09 Crores (Lot size: 155 = 1,95,669 Forms)
Empl. Quota: 5,00,000 Shares = 4.70 Crores
Total Issue: 8,71,53,369 Shares = 819.24 Crores.
The objective of the offer
1. 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.
2. 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.
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.
Strengths
1. Among the largest neutral telecom infrastructure providers in India with pan-India optic fiber network
2. Diversified portfolio of services and solutions
3. Key partner to the Indian Railways in digital transformation
4. Experience in executing projects of national importance with a robust pipeline of projects
5. Strong track record of financial performance
6. Experienced senior management and committed team
Risks
1. Telecom Industry is highly regulated and changes in laws, policy or regulations could impact business adversely
2. Substantial portion of revenue comes out of PSU customers. Govt decisions and policy changes can impact negatively
3. Inability to update to modern telecom technology standards will impact business
4. Adverse developments in legal proceedings they are involved in could impact business
5. Internet security concerns and illegal distribution by third-parties could adversely affect their broadband internet access services
6. Loss of Key suppliers or their failure to deliver equipment or perform services in a timely or satisfactory manner will impact business
