KR Choksey IPO report on RailTel corporation of india
Incorporated in 2000, RailTel with the aim of 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. It is information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. RailTel is a Mini Ratna (Category-I) Central Public Sector Enterprise, wholly-owned by the Government of India and under the administrative control of the Ministry of Railways. As of January 31, 2021, the company’s optical fiber network covers 59,098 route kilometers and covers 5,929 railway stations across towns and cities in India. The transport network is built on high-capacity dense wavelength division multiplexing (“DWDM”) technology and an Internet protocol/ multi-protocol label switching (“MPLS”) network over it to support mission critical communication requirements of Indian Railways and other customers.
Valuation and Outlook
Accordingly, there are significant opportunities for companies, such as, RailTel pursuant to the Indian Railways ambitious plans. Given the Railway plan for modernization of its network, we expect RailTel to benefit from the opportunity going ahead and hence we give a “Subscribe” rating to the issue.
For all IPO stories, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.