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RailTel IPO Details

Issue Open Feb 16, 2021
Issue Close Feb 18, 2021
IPO Price ₹94
Face Value ₹10
IPO Size ₹819.24 Cr
Listing At BSE, NSE
IPO Lot Size 155
wpe77.jpg (3197 bytes) RAILTEL CORPORATION OF INDIA LIMITED

Our Company was incorporated as "RailTel Corporation of India Limited" on September 26, 2000 as a public limited company under the Companies Act, 1956 and the certificate of incorporation was issued by the Assistant Registrar of Companies. N.C.T. of Delhi and Haryana. Our Company received its certificate for commencement of business from the Deputy Registrar of Companies, N.C.T. of Delhi and Haryana on October 9, 2000. For details of changes in the registered office of our Company, see "History and Certain Corporate Matters" on page 146 of the Prospectus dated February 19, 2021 (the "Prospectus").

Registered and Corporate Office: Plate A. 6th Floor, Office Block, Tower 2, East Kidwai Nagar, South Delhi, New Delhi 110023, India, Contact Person: Jasmeet Singh Marwah, Company Secretary and Compliance Officer,
Telephone: +91 11 2290 0600; E mail: cs@railtelindia.com Website: www.raiitelindia.com, Corporate Identity Number: U64202DL2000GOI107905
OUR PROMOTER: THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA

Our Company has filed the Prospectus with the RoC, N.C.T. of Delhi and Haryana and the Equity Shares are proposed to be listed on the BSE Limited ("BSE") and the National Stock Exchange of India Limited ("NSE" and together with BSE, the "Stock Exchanges") and trading is expected to commence on February 26, 2021.

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 87,153,369 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH ("EQUITY SHARES") OF RAILTEL CORPORATION OF INDIA LIMITED (OUR "COMPANY" OR THE "ISSUER") THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA (THE "SELLING SHAREHOLDER"), FOR CASH AT A PRICE OF Rs. 94 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 84 PER EQUITY SHARE) (THE "OFFER PRICE"). AGGREGATING TO Rs. 8.192.42 MILLION (THE "OFFER").

THE OFFER LESS EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE NET OFFER. THE OFFER COMPRISES A NET OFFER OF 86,653,369 EQUITY SHARES AND THE EMPLOYEE RESERVATION PORTION OF 500,000 EQUITY SHARES.

OFFER PRICE AND ANCHOR INVESTOR OFFER PRICE: Rs. 94 PER EQUITY SHARE OF FACE VALUE OFF 10 EACH
THE OFFER PRICE IS 9.40 TIMES THE FACE VALUE OF EQUITY SHARES
Risks to Investors:
i. The three Book Running Lead Managers associated with the Offer have handled 27 public offers in the past three years, out of which 12 Issues closed below the offer price on listing date.
ii. Average cost of acquisition of Equity Shares for the Selling Shareholder in Offer is Rs. 10 per Equity Share and Offer Price at upper end of the Price Band is Rs. 94.
iii. Weighted average return on Net Worth for Fiscals 2020, 2019 and 2018 is 10.47%.
iv. The P/E of Nifty Fifty as on February 9, 2021 is 41.97.
BID/OFFER PROGRAMME
BID/ OFFER OPENED ON: TUESDAY, FEBRUARY 16, 2021
BID/ OFFER CLOSED ON: THURSDAY, FEBRUARY 18, 2021
ANCHOR INVESTOR BIDDING DATE WAS MONDAY, FEBRUARY 15, 2021.

The Offer was made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR") read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (SEBI ICDR Regulations'). The Offer was made through the Book Building Process in terms of Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Net Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") ("QIB Portion") Our Company and the Selling Shareholder in consultation with the BRLMs. have allocated up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis (the 'Anchor Investor Portion'), of which one- third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which Equity Shares are allocated to Anchor Investors Further. 5% of the QIB Portion (excluding the Anchor Investor Portion) was made available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB Portion was made available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price Further, not less than 15% of the Net Offer was made available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer was made available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, up to 500,000 Equity Shares were offered for allocation on a proportionate basis to the Eligible Employees Bidding in the Employee Reservation Portion, subject to valid Bids being received from them at or above the Offer Price. All Bidders (other than Anchor Investors) were mandatorily required to participate in the Offer through the Application Supported by Blocked Amount ("ASBA") process by providing delays of their respective bank account (including UPI ID for RIBs using UPI Mechanism) wherein the Bid Amounts was blocked by the SCSBs or under the UPI Mechanism, as the case maybe, to the extent of respective Bid Amounts. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see "Offer Procedure" on page 353 of the Prospectus.

The Offer received 2,142,092 applications for 2,56,53,91,515 Equity Shares resulting in 29.44 times subscription The details of the applications received in the Offer from Retail Individual Investors. Non-Institutional Investors, Eligible Employees. Anchor Investors and QIBs are as under (before technical rejections)

SI. no Category No. of Equity Shares No. of Applications received Equity Shares Reserved as per Prospectus No. of times Subscribed Amount (Rs.)
A Retail Individual Investors 21,34,872 46,24,03,905 3,03,28,680 15.25 43,46,96,40,479
B Non Institutional Investors 5,935 94,36,75,030 1,29,98,006 72.60 88,70,58,67,91
C Eligible Employees 1,168 6,90,680 5,00,000 1.38 6,49,31,205
D Qualified Institutional Bidders (excluding Anchor Investors) 94 1,13,05,31,870 1,73,69,237 65.09 1,06,26,99 95,780
E Anchor Investors 23 2,80,90,030 2,59,57,446 1.08 2,64,04,62,820
Total 21,42,092 2,56,53,91,515 8,71,53,369 29.44 2,41,15,08,98,194

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid/Offer Closing Date at different Bid prices is as under

SI. No Bid Price No. of Equity Shares % to Total Cumulative Total % Cumulative Total
1 93 59,27,200 0.23 59,27,200 0.23
2 94 2,20,73,35,935 83.90 2,21,32,63,135 84.13
3 CUTOFF 41,75,79,145 15.87 2,63,08,42,280 100.00
TOTAL 2,63,08,42,280 100.00

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being BSE on February 23, 2021

A. Allotment to Retail Individual Investors (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Investors, who have bid at cut-off or at the Offer Price of Rs. 94 per Equity Share, was finalized in consultation with BSE This category has been subscribed to the extent of 14.74861 times The total number of Equity Shares Allotted in Retail Individual Bidders category is 30,345,161 Equity Shares to 195,775 successful applicants. The category-wise details of the Basis of Allotment are as under:

Category No. of Applications Received % of Total Total No. of Equity Shares Applied % to Total No. of Equity Shares allotted per Bidder Ratio Total No. of Equity Shares Allotted
155 18,31,025 88.53 28,38,08,875 63.41 155 211:2229 2,68,65,685
310 1,14,920 5.56 3,56,25,200 7.96 155 39:412 16,86,245
465 34,697 1.68 1,61,34,105 3.60 155 39:412 5,09,020
620 18,310 0.89 1,13,52,200 2.54 155 39:412 2,68,615
775 13,243 0.64 1,02,63,325 2.29 155 39:412 1,94,370
930 7,356 0.36 68,41,080 1.53 155 39:412 1,07,880
1085 7,357 0.36 79,82,345 1.78 155 39:412 1,07,880
1240 2,741 0.13 33,98,840 0.76 155 39:412 40,300
1395 1,327 0.06 18,51,165 0.41 155 39:412 19,530
1550 8,546 0.41 1,32,46,300 2.96 155 39:412 1,25,395
1705 1,142 0.06 19,47,110 0.44 155 39:412 16,740
1860 2,027 0.10 37,70,220 0.84 155 39:412 29,760
2015 25,473 1.23 5,13,28,095 11.47 155 39:412 3,73,705
1* 9:5612* 36*
TOTAL 20,68,164 100.00 44,75,48,860 100.00 3,03,45,161

Includes spillover of 16,481 Equity Shares from Employee Category

Note *1 additional Equity Share has been allotted to 36 Allottees from amongst 22,448 Successful Applicants from the categories 310-2015 (i.e. excluding successful applicants from Category 155) in the ratio of 9:5612

B. Allotment to Non Institutional Investors (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-Institutional Investors, who have bid at the Offer Price of Rs. 94 per Equity Share or above, was finalized in consultation with BSE. This category has been subscribed to the extent of 72.44410 times. The total number of Equity Shares allotted in this category is 13,005,069 Equity Shares to 3,040 successful applicants. The category-wise details of the Basis of Allotment are as under. (Sample)

Category No. of Applications Received % of Total Total No. of Equity Shares Applied % to Total No. of Equity Shares allotted per Bidder Ratio Total No. of Equity Shares Allotted
2170 1,530 2657 33,20,100 0.35 155 148:765 45,880
2325 392 681 9,11,400 010 155 81:392 12,555
2480 111 193 2,75,280 003 155 25:111 3,875
2635 79 1.37 2,08,165 0.02 155 19:79 2,945
861025 1 0 02 8,61,025 0 09 11885 1:1 11,885
877300 1 0.02 8,77,300 0.09 12110 1:1 12,110
904115 1 0.02 9,04,115 0.10 12480 1:1 12,480
931550 1 002 9,31,550 0.10 12859 1:1 12,859
947050 1 002 9,47,050 0.10 13073 1:1 13,073
953250 1 002 9,53,250 010 13158 1:1 13,158
957435 1 002 9,57,435 010 13216 1:1 13,216
8510585 1 0 02 85,10,585 090 117478 1:1 1,17,478
9574350 4 0 07 3,82,97,400 406 132162 1:1 5,28,648
10636270 12 0.21 12,76,59,240 1355 146848 1:1 17,62,176
11063125 1 0.02 1,10,63,125 1.17 152712 1:1 1,52,712
12872285 2 0.03 2,57,44,570 273 177686 1:1 3,55,372
15957405 3 0.05 4,78,72,215 508 220272 1:1 6,60,816
21276540 7 0.12 14,89,35,780 1581 293696 1:1 20,55,872
23936030 1 0.02 2,39,36,030 2 54 330407 1:1 3,30,407
TOTAL 5,758 100.00 94,21,40,530 100.00 1.30,05,069

Includes spill over of 7,063 Equity Shares from Eligible Employees Portion.

C. Allotment to Eligible Employees (After Technical Rejections)

The Basis of Allotment to the Eligible Employees, who have placed bid at the Cut-Off price or at the Offer Price of Rs. 94 was finalized in consultation with BSE. The Eligible Employees Portion has been subscribed to the extent of 0.90582 times. The total number of Equity Shares Allotted in this category is 452,910 Equity Shares to 325 successful Bidders. The category-wise details of the Basis of Allotment are as under:

Category No. of Applications Received % of Total Total No. of Equity Shares Applied % to Total No. of Equity Shares allotted per Bidder Ratio Total No. of Equity Shares Allotted
155 35 10.77 5,425 1.20 155 1:1 5,425
310 29 8.92 8,990 1.98 310 1:1 8,990
465 25 7.69 11,625 2.57 465 1:1 11,625
620 22 6.77 13,640 3.01 620 1:1 13,640
775 9 2.77 6,975 1.54 775 1:1 6,975
930 13 4.00 12,090 2.67 930 1:1 12,090
1085 31 9.54 33,635 7.43 1085 1:1 33,635
1240 11 3.38 13,640 3.01 1240 1:1 13,640
1395 8 2.46 11,160 2.46 1395 1:1 11,160
1550 11 3.38 17,050 3.76 1550 1:1 17,050
1705 9 2.77 15,345 3.39 1705 1:1 15,345
1860 8 2.46 14,880 3.29 1860 1:1 14,880
2015 56 17.23 1,12,840 24.91 2015 1:1 1,12,840
2170 24 7.38 52,080 11.50 2170 1:1 52,080
2325 6 1.85 13,950 3.08 2325 1:1 13,950
2480 2 0.62 4,960 1.10 2480 1:1 4,960
2635 1 0.31 2,635 0.58 2635 1:1 2,635
2790 1 0.31 2,790 0.62 2790 1:1 2,790
2945 4 1.23 11,780 2.60 2945 1:1 11,780
3100 4 1.23 12,400 2.74 3100 1:1 12,400
3255 2 0.62 6,510 1.44 3255 1:1 6,510
3720 1 0.31 3,720 0.82 3720 1:1 3,720
4030 1 0.31 4,030 0.89 4030 1:1 4,030
4185 1 0.31 4,185 0.92 4185 1:1 4,185
4650 1 0.31 4,650 1.03 4650 1:1 4,650
4805 1 0.31 4,805 1.06 4805 1:1 4,805
4960 1 0.31 4,960 1.10 4960 1:1 4,960
5270 8 2.46 42,160 9.31 5270 1:1 42,160
TOTAL 325 100.00 4,52,910 100.00 4,52,910

Unsubscribed portion of 47,090 Equity Shares spilled over to QIB, NIB and Retail Categories in the ratio of 50:15:35 [i.e. 23,546 Equity Shares spilled over to QIB category, 7,063 Equity Shares spilled over to NIB category and 16,481 Equity Shares spilled over to Retail Category].

D. Allotment to QIBs (After Technical Rejections)

Allotment to QIBs. who have bid at the Offer Price of 194 per Equity Share or above, has been done on a proportionate basis in consultation with BSE. This category has been subscribed to the extent of 65.00006 times of Net QIB portion. As per the SEBI Regulations. Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e. 869,639 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i e. 16,523,144 Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 17,392,783 Equity Shares, which were allotted to 94 successful Applicants.

Category Fls/Banks Flls/FPIs IC MFs NBFC OTHs Total
QIB 54,00,488 42,91,490 13,99,815 16,35,274 0 46,65,716 1 73,92,783

Includes spilled over of 23,546 Equity Shares from Eligible Employees Portion.

E. Allotment to Anchor Investors (After Technical Rejections)

The Company and the Selling Shareholders, in consultation with the BRLMs have allocated 25,957,446 Equity Shares to 23 Anchor Investors through 14 Applications (including 6 Mutual Funds through 15 schemes) at the Anchor Investor Offer Price of Rs. 94 per Equity Share in accordance with the SEBI Regulations This represents 60% of the QIB Portion.

Category Fls/Banks MFs ICs AIFs FPl/Flls OTHs Total
Anchor - 1,29,78,460 58,50,630 5,32,270 65,96,086 - 2,59,57 446

The IPO Committee of our Company at its meeting held on February 24, 2021 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful applicants The Allotment Advice Cum Refund Intimation will be dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Offer Account on February 23, 2021 and the payments to non-syndicate brokers have been issued on February 24, 2021. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below The Equity Shares allotted to the successful allottees have been uploaded on February 25, 2021 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is in the process of obtaining the listing and trading approval from BSE, and trading is expected to commence on or about February 26, 2021.

Note: All capitalized terms used and not defined here in shall have the respective meanings assigned to them in the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Offer, KFin Technologies Private Limited at www.kfintech.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole applicant, Serial number of the ASBA form, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

wpe78.jpg (2009 bytes)
KFin Technologies Private Limited
(formerly known as Karvy Fintech Private Limited)
Selenium Tower-B. Plot No. 31 & 32, Financial District, Nanakramguda, Serilingmpally, Hyderabad, Rangareddi 500 032 Telangana, India.
Telephone: +91 40 6716 2222; E-mail: einward.ris@kfintech.com; Website: www.kfintech.com; Contact Person: M Murali Krishna
For RailTel Corporation of India Limited
On behalf of the Board of Directors
Place: New Delhi Sd/-
Date : February 25, 2021 Company Secretary & Compliance Officer

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF RAILTEL CORPORATION OF INDIA LIMITED.

RailTel Corporation of India Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its Equity Shares and has filed the Prospectus with RoC The Prospectus is available on the websites of SEBI. BSE and NSE at www.sebi.gov.in, www.bsemedia.com and www.nseindia.com, respectively, and is available on the website of the BRLMs at i.e. www.icicisecurities.com, www.idbicapital.com and www.sbicaps.com. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. Please note that investment in equity shares involves a high degree of risk and for details relating to the same, please see the section entitled 'Risk Factors' beginning on page 25 of the Prospectus.

The Equity Shares have not been and will not be registered under the U S. Securities Act of 1933 as amended (the "U.S. Securities Act") or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the U.S Securities Act and applicable U S state securities laws Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S and applicable laws of the jurisdictions where such offers and sales are made. There will be no public offering in the United States.



RailTel IPO Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in RailTel IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The RailTel IPO basis of allotment (published above) tells you how shares are allocated to you in RailTel IPO and category wise demand of IPO share.

Visit the RailTel IPO allotment status page to check the number of shares allocated to your application.

Check the basis of allotment document above to know about how the shares are allocated in RailTel IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

2 Comments

2. traderyn  Mar 10, 2021 19:50
@admin please upload BOA
1. RK MAHESHWARI  Mar 6, 2021 15:50
ADMIN
BASIS OF ALLOTMENT DATA OF MANY IPOS ARE NOT AVAILABLE FOR STUDY.
KINDLY COLLECT PDF FILE OF BASIS OF ALLOTMENT DATA AND MAKE IT AVAILABLE FOR MEMBERS.
WHEN I WAS IN DOUBT I REQUESTED KARVY AND LINK IN TIME FOR PDF FILES OF BASIS OF ALLOTMENT AND THEY HAVE SENT ME.