For Indian IPO investors, the next round is starting on 16 February with RailTel IPO. Through the IPO, the government of India aims to raise as much as INR819.24 crore. The offer is priced in the range of INR93 – 94 per share and will mark listing of second PSU this year after IRFC. In this article, you can check the daily movement in grey market premium (GMP) of RailTel IPO. Here are some vital details of the offer:
RailTel IPO details
| Subscription Dates | 16 – 18 February 2021 |
| Price Band | INR93 – 94 per share |
| Fresh issue | Nil |
| Offer For Sale | 87,153,369 shares (INR810.52 – 819.24 crore) |
| Total IPO size | 87,153,369 shares (INR810.52 – 819.24 crore) |
| Minimum bid (lot size) | 155 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
The PSU under Ministry of Railways is the ICT infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. The company is tasked with 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.
RailTel IPO GMP (Grey Market Premium) rates
| Date | GMP (in INR) | Kostak (in INR) | Subject to Sauda (in INR) |
| 25 Feb 2021 | 15 | – | – |
| 24 Feb 2021 | 12 | – | – |
| 23 Feb 2021 | 10 | – | – |
| 22 Feb 2021 | 15 | – | – |
| 20 Feb 2021 | 15 | – | – |
| 19 Feb 2021 | 20 | – | – |
| 18 Feb 2021 | 15 | – | – |
| 17 Feb 2021 | 20 | – | – |
| 16 Feb 2021 | 35 | 400 | 4,500 |
| 15 Feb 2021 | 40 | 450 | 5,000 |
| 13 Feb 2021 | 45 | 450 | 5,000 |
| 12 Feb 2021 | 35 | 400 | 4,500 |
| 11 Feb 2021 | 35 | 400 | 4,500 |
As we can see in the table below, RailTel has decent profitability with double-digit margins. It has managed to post revenue growth in the recent years and has no debt on its books. In addition, it is a regular dividend payer and these factors may further increase the GMP of RailTel IPO. Stay tuned for latest rates.
RailTel’s financial performance (in INR crore)
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 1,021.2 | 1,038.3 | 1,166.0 | 553.8 |
| Expenses | 835.1 | 820.6 | 931.9 | 491.6 |
| Net income | 134.0 | 135.4 | 141.1 | 45.6 |
| Net margin (%) | 13.1 | 13.0 | 12.1 | 8.2 |
Good govt ipo
V.good opo
Enjoying a lot & think it could be an asset.