Railtel Corporation of India IPO – Schedule *(Tentative)*
11th Feb – Announcement of Price Band
15th Feb – Anchor Investors Allotment
16th Feb – Offer Opens
18th Feb – Offer Closes
23rd Feb – Finalisation of Basis of Allotment
24th Feb – Unblocking of ASBA Accounts
25th Feb – Credit of Equity Shares to Depository Accounts
26th Feb – Commencement of Trading
Railtel Corporation of India IPO – Issue Information *(Tentative)*
Issue Opens on: 16 February 2021
Issue Closes on: 18 February 2021
Issue Type: Book Built Issue IPO
Issue Size: 8,66,53,369 Shares
Face Value: Rs.10/- per Share
Issue Price: Rs.93 – Rs.94 Share *(Tentative)*
Discount: NIL
Market Lot: 155 Shares
Listing At: NSE, BSE
Equity Shares outstanding prior to the Issue = 32,09,38,407 Shares
Offer for Sale of 8,66,53,369 Shares @94/- = Rs.814.54Crs
Equity Shares outstanding after the Issue = 32,09,38,407 Shares
Category-wise Break up:
Anchor – 2,58,46,011 Shares = 242.95Crs
QIB – 1,72,30,674 Shares = 161.97Crs
NII – 1,29,23,005 Shares = 121.48Crs
RII – 3,01,53,679 Shares = 283.44Crs (Lot size: 155 = 1,94,540 Forms)
Empl. Quota – 5,00,000 Shares = 4.70Crs
Total Issue – 8,66,53,369 Shares = 814.54Crs.
Subscription required for 1X
RII = 1,94,540 Forms
NII = 121.48 Crs
Railtel Corporation of India IPO – Financial Information (Basis of Valuation)
The information is collated from the following documents:
1) DRHP = Draft Red Herring Prospectus dated January 16, 2020 (390 pages)
2) Addendum = Addendum dated October 23, 2020 (156 pages)
EPS for FY17-18 >>> Rs.03.14 (Page #14 of Addendum)
EPS for FY18-19 >>> Rs.03.43 (Page #14 of Addendum)
EPS for FY19-20 >>> Rs.03.93 (Page #14 of Addendum)
RoNW for FY17-18 >>> 10.90% (Page #88 of DRHP)
RoNW for FY18-19 >>> 10.50% (Page #88 of DRHP)
RoNW for FY19-20 >>> 10.30% (Page #88 of DRHP)
NAV as on March 31, 2020 was Rs.26.0642.67 (Page #88 of RHP)
Listed Industry Peer Group (Page #89 of DRHP): NONE
Railtel Corporation of India IPO – *Market’s Current Estimates of oversubscription*:
NII = 30.00K Crs. = ~246.96X
RII = 25.00L Forms = 12.85X Applic. wise (Avg allotment of ~12.37 shares per lot)
Interest cost *@7.00%p.a.* for 7days = 12.62paise for 1X
Thus, for NII the costing = 246.96 X 12.62paise = Rs.31.16 per share (= GMP)
And, for RII the costing = 12.37 X 31.16 = Rs.386/- (= Kostak)
Railtel Corporation of India IPO – *GMP Estimated*
GMP 35 +/- 1
Kostak 435 +/- 10