RailTel Corporation of India Ltd. is a “Miniratna” (public sector) enterprise of Government of India focusing on providing broadband and VPN services. RailTel was formed in September 2000 with the objective of creating nationwide broadband, telecom and multimedia network, to modernise train control operation and safety system of Indian Railways. RailTel’s network passes through around 5,000 stations across the country, covering all major commercial centres.
RailTel is a fully Government owned company, now the Government is looking to divest up to 25% stake in RailTel Corporation through Initial Public Offering (IPO) and also looking for advertising agencies to manage its listing process.
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RailTel offers a wide gamut of managed telecom services to Indian Telecom market. The service includes Managed lease lines, Tower colocation, MPLS based IP-VPN, Internet and NGN based voice carriage services to Telecom Operators, Internet Service Providers, MSOs, Enterprises, Banks, Govt. Institutions/dept., Educational Institutions/Universities, etc. RailTel is aggressively entering into Enterprise services market with launch of its various services like Data Center, Railwire, Telepresence, etc. Recently RailTel has also acquired Unified License.
Gross Revenue of the company is growing @ 17% CAGR & Gross Margin is growing @ 6% CAGR. Dividend Payout for FY 18-19 is Rs. 64 Crore, which is growing @ 39% CAGR. Net Worth of the company is growing @ 6% CAGR.
So it seems that financial situation of the company is really good. There is no confirmation about IPO date. But it seems that the IPO may hit the market around mid – January 2020.
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The Indian Railways Catering & Tourism Corporation (IRCTC) got listed recently. IRCTC IPO got tremendous response from all categories of Investors . The IPO had got subscription more than 111 times. So it seems that RailTel IPO may get that type of response.