RailTel IPO kicks off: Can it deliver strong listing gains?

NEW DELHI: RailTel Corporation kicked off its Rs 820-crore initial public offer (IPO) on Tuesday.

The issue is an offer for sale for 87,153,369 equity shares in the price band of Rs 93-94. At the upper limit of this price band, the IPO is valued at 21.4 times PE on an FY20 trailing basis. Its enterprise value (EV) is four times the earnings before interest, tax, depreciation, and amortisation (Ebitda).

The Mini Ratna is among the largest neutral telecom infrastructure providers in India. It has exclusive rights over 67,415 route kilometers, connecting 7,321 railway stations, for laying optical fiber cable. The company offers a high capacity bandwidth of up to 800G at 87 locations in India.