RailTel IPO share allocation finalised: How to check application status2 min read . Updated: 24 Feb 2021, 02:34 PM IST
- RailTel IPO was subscribed over 40 times
- RailTel is a debt free company and pays consistent dividends
The share allocation in RailTel IPO, which was subscribed over 42 times has been finalized, according to the website of the issue's registrar. Applicants to RailTel IPO can check the allocation status on the website of the issue's registrar KFin Technologies, which will manage share allocation and refund, or on BSE website. Listing of RailTel shares are likely on February 26.
RailTel IPO had a price range of ₹93-94 per share. In this IPO, the government is selling 27.16% stake.
The ₹819 crore IPO of RailTel was open between February 16 and February 18. The offer received bids for 2,59,42,43,370 shares against 6,11,95,923 shares on offer. The retail individual investors segment was subscribed over 16 times while qualified institutional buyers (QIBs) category 65.14 times and non-institutional investors 73.25 times.
ICICI Securities, IDBI Capital Markets & Securities Limited and SBI Capital Markets were the managers to the offer.
Ahead of the IPO, RailTel had raised ₹244 crore from 14 anchor investors.
Many brokerages had also recommended subscribe to the issue.
"RailTel derives 66% of its revenues from the telecom segment while the remaining portion is from railways and other projects. RailTel, if performs efficiently can benefit from the 5G growth in India from a fiberisation needs’ perspective. It could also play a key role in digital transformation of the railways. Besides, Covid-19 has had a minimal impact on the telecom industry and has in fact triggered growth for certain players due to increased data usage and VPN services for people working from home," said Nirali Shah, Head of Equity Research, Samco Securities.
"Since RailTel is a debt free company and pays consistent dividends it could witness some traction but for long term investors there are a few red flags. Firstly, the company has delivered single digit revenue and PAT CAGR of 7.5% and 2.5% respectively from FY18 to FY20. There is high dependence on government entities and concentration risk given that 23.8% of its revenues comes from top 3 customers. Its presence in a highly regulated industry is another cause of concern. Over all, the company is fairly priced at its FY20 P/E of 21.3 times," she added.
RailTel Corporation of India, a central public sector enterprise wholly-owned by the Government of India and under the administrative control of the Ministry of Railway, is an information and communications technology (ICT) infrastructure provider and one of the largest neutral telecom infrastructure providers in India. A neutral telecom infra provider is a third party who has little or no part in providing Internet service to the end-user but allows interconnection between multiple telecommunication carriers. RailTel also undertakes various ICT projects for the Indian Railways, central government and state governments.
The share allocation of Nureca Limited IPO has been finalised. Link Intime India Private Ltd is the registrar of the issue and will be managing share allocation and refund. Investors can check the status of their application status on the website of the registrar or BSE.