RailTel Corp jumps on bagging order worth Rs. 300 cr from Defence Ministry.

RailTel Corporation of India rose 4.12% to Rs. 130.30 after the company received a contract worth Rs. 299.95 crore from Directorate of Information Technology, Indian Air Force, Ministry of Defence for implementation of secure OPS network.

The work is to be executed over a period of 12 months, the company said in a statement issued after trading hours on Thursday, 2 September 2021.

RailTel Corporation of India's consolidated net profit jumped 29.2% to Rs. 21.13 crore on 20.6% increase in net sales to Rs. 304.74 crore in Q1 June 2021 over Q1 June 2020.

RailTel, a "Mini Ratna (Category-I)" Central Public Sector Enterprise is an information and communications technology (ICT) provider and one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network on exclusive Right of Way (ROW) along Railway track. The Optical Fibre Cable (OFC) network covers important towns & cities of the country and several rural areas. As of 30 June 2021, the Government of India held 72.84% stake in the company.

Shares of RailTel Corporation were listed on the stock exchanges on 26 February 2021. The stock was listed at Rs. 104.60, a premium of 11.28% to the initial public offer (IPO) price of Rs. 94. The issue was subscribed 42.39 times. The issue opened for bidding on 16 February 2021 and closed on 18 February 2021. The price band for the IPO was set at Rs. 93-94 per share.

BS