RailTel OFS – Date, Price, Review & Details



Founded in 2000, RailTel is one of the largest neutral telecom infrastructure providers in the country. It is the 7th issue to hit the equity markets in the year. The company can raise INR 819 crores at upper price band.

The issue includes a reservation of up to INR 5,00,000 worth of equity shares (1,250 equity shares) for subscription by eligible employees

Issue Details


  • Among the largest neutral telecom infrastructure providers in India with pan-India optic fiber network
  • Diversified portfolio of services & 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


The company reported its EPS at INR 4.4 per share for the year ending March 2020, bringing the IPO valuation to a P/E of 21.4 at upper price band, against sector PE of 30.4.

We recommend to apply for the issue on the basis of its strong financials and high prospects of the industry growth.

Issue Break-Up

Objects of Offer

The company will not receive any proceeds from the issue and will entirely to the Selling Shareholders.

Background highlights of the company in brief

  • RailTel Corporation, a “Mini Ratna (Category-I)” PSU is one of the largest neutral telecom infra providers in the country owning a Pan-India optic fiber network on exclusive Right of Way along Railway track.
  • 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, laying optical fiber cable using the right of way along railway tracks.
  • The company’s portfolio of services can be broadly classified in to Telecom Network Services (NLD Services, ISP Services), Telecom Infrastructure Services (IP-1 Services), Managed Data Center and Hosting Services (Data Centre and Managed Hosting Services, TPaaS), Projects (System Integration Services).
  • The company’s expertise includes: HD Video Conferencing Services, Data Center Services, RailWire, Leased Line, Virtual Private Network, Internet Leased Line, Managed Data Services, Consultancy Services, Rack and Space Collocation, Tower Collocation, NLD for Voice Carriage, Signaling Services.
  • RailTel has a strategic relationship with the Indian Railways and it undertakes a wide variety of projects including provision of mission critical connectivity services such as video surveillance system 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.
  • It also undertakes various passenger services including content on demand services and Wi-Fi across major railway stations in India.
  • Presently, optic fiber network of RailTel covers over 58,742 route kilometers and covers 5,848 railway stations across towns and cities in India.
  • In the past, it has undertaken various mission-mode projects for the Government of India including rolling out the National Knowledge Network, Bharat Net (formerly, the National Optical Fiber Network) and USOF funded optical fiber based connectivity project in North East India.
  • As for the telecom industry, there is likely to be a minimal impact of COVID-19 on telecom companies. The industry might have taken a small hit during the hit, which was a short-term effect due to limited availability of smartphones in the market.

Briefing about directors & key managerial personnel

Briefing Financials

Balance Sheet

Statement of Profit and Loss

Key Ratios

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Impact of Union Budget 2021 on Stock Market and Commodity Market

Impact on Stock Market

The Union budget 2021 has been a bold one, where the government has increased its expenses without increasing the tax rates. Till now, the investors have welcomed the budget with open arms and it may continue to have a strong positive impact on the equity markets for FY ’21-’22 due to increase in liquidity, especially for some sectors including Infrastructure and affiliated sectors, Railways, Financial, and Capital Goods. Auto and Pharma sectors can boost from the scrappage policy introduced in the budget, and Consumer Goods (Electronic) sector can gain from the higher customs duty levied on imports. In short term, the equity markets might witness a correction, but for the year, the budget looks to be fruitful for equities, and in turn, for the country’s economy as well.

Impact on Commodity Market

In the Union Budget 2021, the FM has not announced any changes in the commodities transaction tax. However, there has been some changes in the custom duty on some commodities, which might affect the commodity market. Base customs duty on gold and silver has been reduced from 12.5% to 7.5%, but they will attract agriculture Infrastructure and development cess so the net rate levied comes around 10.75%. The budget has no impact on crude oil. As for iron and steel, Customs duty has been reduced to 7.5% from 10% earlier on semis, flat, and long products of non-alloy, alloy, and stainless steels.

Page 23, Financial Express Newspaper, 14 Feb 2021

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Morning Market Insight Report – 15 Feb 2021

Bank Nifty Intraday Outlook

In Friday’s trading session, Bank Nifty gained 1.00%, with PSU Banks an Private Banks gaining 0.26% and 0.96% respectively.

We expect intraday range could be 35,587-36,609 with sideways to negative momentum & broader range could be expected between 35,302 to 36,914 zone for this week.

Nifty Intraday Outlook

In Friday’s trading session, Nifty almost flat inclined towards a negative zone, despite witnessing a highly volatile trading session.

We expect intraday range could be 14,958-15,364 with sideways to negative momentum while broader range could be 14,813 to 15,527

Short and Long term moving averages

Daily market statistics

Major global & domestic economic events

Results Calendar

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