RailTel Share Price
RailTel ‘s shares are listed at a premium on the exchanges today. At 10:27 pm, the shares were up 20% at 115 115 compared to an issue price of 94. RailTel’s IPO was subscribed more than 42 times and its price range. 93–94 per share. RailTel’s IPO of 819 crore was opened between February 16 and February 18. The government sold a 27.16% stake in the issue. In comparison, the BSE Sensex. Was down over 1.6%. Shares of another railway related company IRCTC were trading 3% higher today and the boom here was such that it was going to defeat.
The Retail Individual Investors segment was subscribed 16 times while qualified institutional buyers (QIBs) 65.14 times and non-institutional investors 73.25 times. Ahead of the IPO, RailTel raised ₹ 244 crore from 14 anchor investors.
RailTel is a central public sector enterprise under the administrative control of the Ministry of Railways. It is an information and communications technology (ICT) infrastructure provider and one of the largest neutral telecommunications infrastructure providers in India. Which is special for our India and means a lot. Railways also undertakes various ICT projects for Indian Railways, Central Government and State Governments. Several brokerages had also recommended to look into the issue.
It is worth adding that RailTel derives 66% of its revenues from the telecom segment while the remaining portion comes from railways and other projects. Analysts say the company stands to gain from 5G growth in India from a fiberisation needs’ perspective. It could also play a key role in the digital transformation of the railways.
The company is going to play a key role in digital transformation of Indian Railways. It’s margins & return ratios are better compared to other telecom players in India. The firm has priced its issue at 21.4x PE on a FY20 trailing basis, which is quite reasonable by looking at the strong future growth rates of the company,” said Angel Broking in its report. The company has been profitable since FY07 and has consistently paid dividends since FY08. Income from telecom services (64%) and income from projects (34%) are the main revenue generators for Mini Ratna. Over fiscal 2018-20, its revenue grew at a compounded annual growth rate of 7% while net profit grew 3%.
In FY20, the RailTel reported a profit of Rs 141 crore on revenue of Rs 1,128 crore, with the highest net profit margin of 13%, due to zero debt. Railtel’s operating profit margin was 30%. The company is now planning to expand its telecom services and deploy latest technologies to enable high capacity next-generation network.