RailTel Corporation of India lists with 16% premium at 109 per share on NSE

Most brokerages had advised subscribing to the issue on the back of robust fundamentals, better margins, diversified portfolio, and expectations of strong growth in the future.

The price band for the IPO was fixed at Rs 93-94 per share.

RailTel is a Mini Ratna central public sector enterprise that was incorporated in September 2000, with the aim of modernising the existing telecom system for train control, operation and safety. It is one of the largest neutral telecom infrastructure providers in India.

In FY20, RailTel had the highest net profit margin among key telecom companies and key IT/ICT companies in India, with a profit margin of 12.5 percent. The company expects strong growth in data center services in the future as the government plans to invest in smart cities, health, e-office projects, and education.

The firm generates additional revenues by creating a nationwide broadband and multimedia network by laying optical fibre cable by using the right of way along railway tracks.