Big News! Rama Telecom Limited to Go Public – Full IPO Breakdown
Rama Telecom Limited is preparing to launch its Initial Public Offering (IPO) as a book-built issue of 36.96 lakh shares. The entire issue comprises fresh equity shares, meaning that the company is raising new capital rather than offering shares from existing stakeholders. The IPO dates and price band have not yet been announced, and the allotment details will be finalized at a later date.
Affinity Global Capital Market Private Limited has been appointed as the book-running lead manager (BRLM) for the IPO, while Cameo Corporate Services Limited will act as the registrar. Rama Telecom Limited plans to list its shares on the NSE SME exchange, which focuses on small and medium enterprises.
IPO Structure and Issue Details
The Rama Telecom IPO consists of 36,96,000 equity shares. The issue is classified as a book-built issue, which means that the price of the shares will be determined through a bidding process within a specified price band, which is yet to be disclosed. The face value of each share is set at ₹10.
The total issue size in terms of monetary value will be determined based on the final price band. The company’s shareholding is expected to increase post-issue due to the fresh issuance of shares.
IPO Reservation Details
The shares will be allocated among different investor categories as follows:
• Qualified Institutional Buyers (QIB): Not more than 50% of the net issue.
• Retail Investors: Not less than 35% of the net issue.
• Non-Institutional Investors (NII) or High Net-Worth Individuals (HNI): Not more than 15% of the net issue.
Promoter Holding and Ownership
The company’s promoters include Mr. Rama Kant Lakhotia, Mrs. Neena Lakhotia, Ms. Nikita Lakhotia, and Ms. Simran Lakhotia.
• Pre-issue shareholding: 98.98% of the company’s shares are held by the promoters.
• Post-issue shareholding: The promoter’s stake will decrease post-IPO due to equity dilution.
Company Background and Business Operations
Established in 2004, Rama Telecom Limited is a leading player in the telecom and data communication industry, offering end-to-end networking and infrastructure solutions. The company specializes in laying and maintaining optical fiber cables (OFC) and infrastructure development for large-scale clients, including Indian Railways, Airtel, IOCL, and the Airport Authority of India.
Rama Telecom focuses on delivering high-quality, sustainable, and efficient networking solutions, ensuring seamless connectivity. Its core areas of expertise include:
• Optical Fiber Cable Laying: The company provides advanced fiber optic network installation using technologies like Horizontal Directional Drilling (HDD) and micro-trenching to minimize disruption and improve efficiency.
• Network Planning and Design: Rama Telecom offers customized network solutions, ensuring scalability and operational efficiency.
• Installation and Commissioning: The company installs and commissions telecom equipment, including mobile towers, switching systems, and transmission networks.
• Turnkey Project Management: Rama Telecom manages complex telecom infrastructure projects from start to finish, ensuring timely delivery and cost control.
• Data Communication Solutions: The company provides broadband connectivity and high-speed internet services across India.
Strategic Partnerships
Rama Telecom collaborates with leading Original Equipment Manufacturers (OEMs) and distributors such as Nokia, D-Link, Tejas Networks, Exide, Aaram Plastics, Mescab, Mrotek, Puncom, Statcon, Team Engineers, and Webfil to enhance its service offerings. These partnerships help the company strengthen its position in the telecom infrastructure sector and deliver comprehensive solutions to clients.
Competitive Strengths
Rama Telecom holds a competitive edge due to several factors:
• Expertise in optical fiber cable (OFC) laying and Horizontal Directional Drilling (HDD).
• Established relationships with major telecom players like Reliance Jio, Airtel, Vodafone Idea, BSNL, and Tata Communications.
• Nationwide project execution capability.
• Offering of data center solutions and cloud-based services for enterprises.
• Customized, high-quality telecom solutions tailored to client needs.
• Experienced team of professionals in telecom engineering, project management, and network optimization.
Financial Performance
Rama Telecom has demonstrated consistent growth in its financial performance over the last few years. Below are the key financial highlights (in ₹ crores):
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 22.56 | 19.44 | 15.94 | 13.54 |
| Revenue | 18.91 | 37.48 | 33.22 | 32.59 |
| Profit After Tax | 1.92 | 2.61 | 1.08 | 1.01 |
| Net Worth | 11.46 | 9.53 | — | — |
Rama Telecom’s total assets increased from ₹13.54 crore in March 2022 to ₹22.56 crore in September 2024, reflecting significant growth in its operational capacity. Revenue stood at ₹18.91 crore for the six-month period ending September 2024, with a profit after tax of ₹1.92 crore.
Human Resources and Management
As of September 30, 2024, Rama Telecom has a team of 40 employees, including directors, key managerial personnel (KMP), and senior managers. The company’s leadership is responsible for overseeing operations, compliance, marketing, and financial management.
Future Outlook
Rama Telecom’s strategic focus on expanding its optical fiber network and providing high-speed data connectivity positions it well to capitalize on the growing demand for telecom infrastructure in India. Its partnerships with leading telecom service providers and equipment manufacturers further strengthen its market position.
The proceeds from the IPO are expected to support the company’s growth initiatives, including network expansion, technological upgrades, and strengthening its financial position.
