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Short Note about Railtel Corporation Of India Ltd :
Railtel Corp 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. The Company 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 June 30, 2020, its optic fiber network covers over 55,000 route kilometers and covers 5,677 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.
Railtel Corp operates data centers in Gurugram, Haryana and Secunderabad, Telangana to host and collocate critical applications for customers including the Indian Railways. In addition to strategic and critical network infrastructure services, it also undertakes various ICT projects for the Indian Railways, central government and state governments, including various train control system projects for Indian Railways.
We offer a diverse range of services across industries.
1) Telecom Network Services
2) Telecom Infrastructure Services
3) Managed Data Center and Hosting Services
4) Projects (System Integration Services)
Its operations are certified with various certifications including ISO 9001:2015, ISO/IEC 20000-1:2011, ISO/IEC 27001:2013, CMMI Maturity Level-3 and CMMI Maturity Level-4 for its quality management systems, information security management systems, and service management systems, respectively.
Railtel Corp has a strategic relationship with the Indian Railways and we undertake a wide variety of projects including provision of mission critical connectivity services such as Video Surveillance System (“VSS”) at stations and within trains, ‘e-Office’ services and implementing short haul connectivity between stations and long haul connectivity to support various organizations within the Indian Railways. We also undertake various passenger services including Content on Demand (“CoD”) services and Wi-Fi across major railway stations in India.
Some of the qualitative factors and our strengths which form the basis for the Offer Price are:
* 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
* Professionally managed with strong corporate governance and senior management team with significant
The promoters of Railtel Corporation Of India Ltd:
The President of India Acting thourgh The Ministry of Railways, Government of India
Main object of the issue of Railtel Corporation Of India Ltd:
The objects of the Offer are:
(i) to carry out the disinvestment of [?] Equity Shares by the Selling Shareholder and
(ii) to achieve the benefits of listing the Equity Shares on the Stock Exchanges
IPO Particulars of Railtel Corporation Of India Ltd:
IPO Opens on : ? Nov 2020
IPO Closes on : ? Nov 2020
Issue Type: Book Built Issue IPO
Issue : Up to [?] Equity Shares aggregating up to Rs [?] million*
Employee Reservation Portion Up to [?] Equity Shares aggregating up to Rs [?] million
Net Offer Up to 8,66,53,369 Equity Shares aggregating up to Rs [?]
Issue Size Rs. ? Crore
Face Value per share : Rs. 10
Price Band: Per Equity Share: Rs. ?
Minimum Order Quantity: ? Shares
Listing will at: BSE,NSE
Shares offered to
QIB 43,326,683 Shares = INR ?Crs
NII 12,998,006 Shares = INR ?Crs
RII 30,328,680 Shares = INR ?Crs (Lot size: ? = ? Forms)
Equity Shares outstanding prior to the Offer 320,938,407 Equity Shares
Equity Shares outstanding after the Offer 320,938,407 Equity Shares
? – Price Band announced
? – Anchor List
? – Offer Opens
? – Offer Closes
?– Finalisation of Basis of Allotment
?– Unblocking of ASBA
?– Credit to Demat Accounts
?– Listing on NSE & BSE
Financial snapshot Railtel Corporation Of India Ltd:
Earnings per Share 2019-20 Rs 4.40
Earnings per Share 2018-19 Rs 4.42
Book Value of the Share as on 31.03.2020 Rs 42.67
Return on Net Worth: 19-20 10.30 %
Return on Net Worth: 18-19 10.50 %
Upper Price Band/last EPS: ?
Upper offer price/Book Value Ratio:
Not applicable as there are no listed companies in India that engage in a business similar to that of our Company.
Lead Managers of Railtel Corporation Of India Ltd IPO:
ICICI Securities Limited
IDBI Capital Markets & Securities Limited
SBI Capital Markets Limited
Registrar to the IPO :
KFin Technologies Private Limited
Registered Office of Railtel Corporation Of India Ltd:
Plate – A, 6th Floor,
Office Block, Tower-2,
East Kidwai Nagar,
New Delhi 110023,
Jasmeet Singh Marwah,
Company Secretary and Compliance Officer
Total Subscription of Railtel Corporation Of India Ltd :
on Day 1(on 00.00.2020 at 17.00 IST)
QIB : shares offered:xx Subscribed
NII : Shares offered: xx Subscribed : xx
RII : Shares offered : XX Subscribed : xx
Total : Shares offered :XX Subscribed : xx