After the Indian Railway Finance Corporation, we have another railway-related company about to get listed - Railtel Corporation of India. The government wholly owns it and it is an information and communications technology ("ICT") infrastructure provider that falls under the Ministry of Railways' administrative control.
The RailTel IPO is available for subscription from 16th to 18th February 2021 & you can apply for this by clicking - invest.upstox.com/
Here's more information on RailTel to make an informed decision:
RailTel was set up to modernise telecom systems for the railways by creating an optic fiber-based broadband network along railway tracks. As of 30th June 2020, its optic fiber network covers over 55,000 route kilometres and covers 5,677 railway stations across India.
In FY20, the company generated about 25% of its revenues, or ₹283 crores, from projects with the Indian Railways. The company claims to be net-worth-positive since inception. It is valued at ₹1,369.3 crores in FY20. Its operations are funded entirely by internal accruals since Fiscal 2013 and the company is debt-free. Its financials have steadily risen too. Revenues from operations have grown at a CAGR of 7.4% during FY18-20, with the company clocking ₹1,128 crores in the last fiscal. In FY20, RailTel reported a net profit margin of 13%. For reference, margins for Reliance Jio Infocomm Limited and Tata Communications Limited stood at 10% and 4%, respectively.
You can learn how to apply for an IPO by clicking here
