Rama Telecom
Book Building issueSMENSE₹25.13 Cr issue
+5.88%
Listing gain over issue price
Issue size
₹25.13 Cr
1 lot at cut-off
₹1,36,000
Lot size
2,000shares
Open
25 Jun 2025
Close
27 Jun 2025
Allotment
30 Jun 2025
Listing
02 Jul 2025
Listing performance
Issue price
₹68
Listed at
₹72
Listing-day close
₹68.40
Latest price
₹87
Close on 23 Oct 2026
Listing gain
+5.88%
Return since issue
+27.94%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Jun 2025 – 27 Jun 2025
- Listing date
- 02 Jul 2025
- Face value
- ₹10 per share
- Issue price
- ₹68 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹25.13 Cr
- Market cap at offer price
- ₹89.76 Cr
- Promoter holding
- 98.98% → 71.28% pre-issue → post-issue
- ISIN
- INE14W901010
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Affinity Global Capital Market Pvt.Ltd.
- Registered office
- Kamalalaya Centre 156A, Lenin Sarani, Room No-302, 3rd Floor, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,86,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹68
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,36,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,72,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,52,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,88,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹68 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.82 | 4.19 |
| P/E (×) | 11.68 | 16.23 |
| Price to book (×) | 3.91 | — |
| Market cap | — | ₹89.76 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 33.58%
- ROCE
- 37.06%
- Debt / equity
- 0.30
- PAT margin
- 13.24%
- EBITDA margin
- 17.44%
- NAV per share
- ₹17.41
- Price to book
- 3.91
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rama Telecom
Rama Telecom Limited is a telecom infrastructure company incorporated on July 12, 2004 in Kolkata, West Bengal. The company undertakes vendor projects involving cable and duct laying work for telecom operators, and provides operation and maintenance services for optical fiber cable networks. Its business is working capital intensive, with inventories and trade receivables forming major parts of current assets. The company derives a significant portion of its income from customers within India, including Indian Railways, which retains 10% to 30% of invoice amounts as deposits released upon project completion. Revenue for FY2025 was ₹4,173.80 lakhs with profit before tax of ₹745.72 lakhs.
Company Analysis
from RHPRama Telecom Limited lays optical fiber cables and ducts for telecommunications and railway companies, and operates and maintains these cable networks.
Rama Telecom Limited is a telecom infrastructure company incorporated on July 12, 2004 in Kolkata, West Bengal. The company undertakes vendor projects involving cable and duct laying work for telecom operators, and provides operation and maintenance services for optical fiber cable networks. Its business is working capital intensive, with inventories and trade receivables forming major parts of current assets. The company derives a significant portion of its income from customers within India, including Indian Railways, which retains 10% to 30% of invoice amounts as deposits released upon project completion. Revenue for FY2025 was ₹4,173.80 lakhs with profit before tax of ₹745.72 lakhs.
Objects of the Issue
- Objects of the Offer p.87
- To meet working capital requirements ₹1,401.42 lakhs p.145
- To meet Capital Expenditure ₹613.76 lakhs p.145
- General Corporate Purposes [●] p.145
- To Meet the Offer expenses p.145
- Not explicitly stated in this document section - Objects of the Issue section referenced as beginning on page 141 p.381
Issue Structure
- Total Issue
- Up to 36,96,000 Equity Shares aggregating to ₹[●] lakhs
- Fresh Issue
- Up to 36,96,000 Equity Shares having face value of ₹10/- each at an Offer Price of ₹[●] per Equity Share (including a share premium of ₹[●] per Equity Share) aggregating to ₹[●] lakhs
- Price Band
- [●]
- Face Value
- ₹10/-
Business Model
The company undertakes vendor projects where it performs cable and duct laying work for telecom operators. Vendor projects are typically awarded based on quality of work, timely execution, and price competitiveness. Revenue is generated from these project-based services and operation and maintenance of optical fiber networks.
Business Segments
Undertakes vendor projects for laying optical fiber cables and ducts for telecommunication and railway companies
Provides operation and maintenance services for optical fiber cable networks
Device-to-Device (D2D) communication for railway operations, including optical fiber cable laying, trenching, termination, and network setup for signaling and communication systems
Optical fiber network project management, including FTTH (Fiber to the Home), in-building wiring (IBW), and long-distance connectivity solutions for telecom operators
Telecom infrastructure services for petroleum distribution networks
Telecom infrastructure services for airport operations
Operations centered on Device-to-Device (D2D) communication, optical fiber network deployment, and infrastructure projects. Projects executed in supply and execution phases with seasonal variations in activity based on weather conditions.
Operations focused on managing optical fiber network projects, providing communication infrastructure solutions, and maintaining network services for telecom operators. Significant revenue driver with robust demand for reliable communication services.
Supply of materials and execution of projects for telecommunications and railway infrastructure, including supply and installation of Optical Fiber Cable, Quad Cable, PIJK Cable, DWC Pipe, HDPE Pipe, Route Tracker, Fault Locater, GI Pipe, Solar Panel and related accessories
Repair and maintenance activities for telecommunications and railway infrastructure projects
SWOT Analysis
Strengths
- • Technology-driven engineering expertise in optical fiber with end-to-end customized networking solutions(p.37)
- • Pan-India operational presence and strong relationships with government and corporate clients(p.37)
- • Established partnerships with major sectors including Railways, Telecom, Petroleum and Airport(p.37)
- • Strong revenue growth trajectory with consistent profitability(p.39)
- • Diversified customer base with top 10 customers representing 93.84% of sales indicating established client relationships(p.51)
- • Established expertise in optical fiber installation and networking solutions for government and telecom sectors(p.151)
- • High concentration of revenue from secure government customers, primarily Indian Railways(p.150)
- • Strong financial performance with improving profitability metrics(p.167)
- • Experienced promoter team with deep industry knowledge(p.164)
- • 20+ years of industry experience with expertise in optical fiber infrastructure(p.204)
- • Pan-India operational presence across multiple states and sectors(p.212)
- • Established long-term client relationships with government and private entities(p.212)
- • Consistent timely execution of complex PMO projects(p.213)
- • Experienced workforce with 10+ years average tenure(p.213)
- • Working with leading government and private sector clients(p.213)
- • Experienced board with independent directors possessing diverse expertise(p.262)
- • Multiple banking relationships and credit facilities arranged(p.313)
- • Growing revenue and profitability with strong profit margins(p.300)
- • Pan-India presence with established service delivery capability(p.324)
- • Decade-long operational legacy in telecom and infrastructure sectors(p.324)
- • Strong return on net worth demonstrating operational efficiency(p.321)
- • Strong revenue and profit growth trajectory(p.338)
- • Significant improvement in operating EBITDA margin(p.326)
- • High return on capital employed(p.326)
- • Strong liquidity position(p.326)
- • Improved debt service capability(p.326)
- • Reduced financial leverage(p.326)
Weaknesses
- • High customer concentration with top 5 customers accounting for 68.86% of revenue(p.51)
- • Significant supplier concentration with top 10 suppliers contributing 71.98% of purchases(p.52)
- • Substantial working capital requirements with continuous increase creating funding pressure(p.53)
- • High capital expenditure requirements straining cash flow and operational flexibility(p.62)
- • Significant dependence on senior management with limited succession planning(p.58)
- • Contingent liabilities of Rs. 999.02 lakhs as of March 31, 2025 including GST and tax demands(p.43)
- • History of negative operating cash flows limiting financial flexibility(p.62)
- • Working capital intensive operations with high inventory and receivables concentration(p.63)
- • Significant trade receivables concentration with blocked invoices from Indian Railways(p.63)
- • Material contingent liabilities including GST and tax demands(p.64)
- • Significant litigation exposure with tax and other pending cases(p.65)
- • Persistent delays in government compliance filings and payments(p.67)
- • Secured debt backed by promoter guarantees and lender charges on assets(p.75)
- • Dependence on vendor projects with limited diversification(p.74)
- • Significant working capital requirements and increasing inventory holdings(p.152)
- • High dependence on payment cycles of government customers, particularly Indian Railways(p.150)
- • Significant increase in trade receivables reflecting extended payment collection periods(p.152)
- • Concentrated customer base with limited revenue diversification(p.152)
- • High capital expenditure requirements for infrastructure projects(p.212)
- • Fragility of optical fiber cables requiring careful handling(p.212)
- • Heavy dependence on government contracts (90.11% of revenue from government in FY 2025)(p.205)
- • Limited customer base with only 20 total customers(p.211)
- • High concentration of revenue from government sector creating customer dependency(p.325)
- • Significant contingent liabilities including GST demand and bank guarantees(p.313)
- • Material trade receivables outstanding across multiple periods indicating collection delays(p.319)
- • Recent CFO resignation creating management continuity concerns(p.262)
- • High inventory levels and significant work-in-progress buildup(p.309)
- • Personal guarantees from promoters backing company borrowings(p.314)
- • Dependence on limited number of customers(p.329)
- • Outstanding tax demands across multiple years(p.351)
- • TDS demands outstanding for multiple fiscal years(p.351)
- • Material GST demands pending(p.352)
- • Outstanding EPF and ESI dues(p.355)
- • Significant material litigation with creditor(p.354)
Opportunities
- • India Optical Fiber Cables Market expected to reach US$ 2.50 Bn by 2026 at 20.11% CAGR(p.36)
- • Indian Railways expansion providing substantial infrastructure deployment opportunities(p.36)
- • Geographic expansion strategy to reduce regional concentration and access new markets(p.61)
- • Technology advancement and innovation to enhance competitive positioning(p.37)
- • Growth through vendor project acquisition and network expansion(p.74)
- • Market expansion into underserved regions with optical fiber infrastructure(p.74)
- • Strategic collaboration with government and industry stakeholders(p.74)
- • Participation in Indian government's infrastructure expansion projects and railway modernization initiatives(p.199)
- • Growing fiber optical cable market in India driven by digital transformation and 5G rollout(p.197)
- • Expansion of Indian Railways network and high-speed rail projects creating demand for infrastructure services(p.199)
- • Government initiatives for broadband connectivity and digital infrastructure development(p.197)
- • Strong Indian economic growth and capital expenditure on infrastructure(p.189)
- • Expansion of railway infrastructure with Vande Bharat modernization initiatives(p.200)
- • Large-scale railway network expansion targeting 50,000 km of new tracks(p.200)
- • Growing rural and urban telecom penetration with 969+ million internet subscribers(p.201)
- • 5G deployment opportunity with expected 920 million unique mobile subscribers by 2025(p.201)
- • Government support through Union Budget 2024 allocation to telecom sector(p.202)
- • Transition to advanced technologies like IP-MPLS and fiber-to-home deployment(p.213)
- • Kavach system deployment for railway safety infrastructure(p.234)
- • Growing private sector revenue indicating market diversification potential(p.325)
- • Railway sector D2D communication and optical fiber network expansion(p.325)
- • Digital transformation and high-speed connectivity demand in telecom(p.325)
- • IPO capital raise enabling expansion and infrastructure investment(p.301)
- • Telecom sector resilience and government infrastructure investment focus(p.325)
- • Focus on high-margin project execution(p.339)
- • Expansion of installation and commissioning services(p.335)
- • Participation in greater number of tenders(p.336)
- • Expansion of geographical presence across India(p.339)
- • Onboarding new B2B customers(p.339)
Threats
- • Loss of major customers or government orders would materially impact revenue(p.51)
- • Raw material supply disruptions and price volatility affecting production costs(p.52)
- • Adverse weather conditions and monsoons disrupting project execution and deployment activities(p.54)
- • Extended payment cycles and collection risks from government contracts(p.58)
- • Economic slowdown and reduced government infrastructure spending affecting demand(p.58)
- • Regional market concentration in Telangana and West Bengal creates exposure to localized disruptions(p.61)
- • Project delays and penalties due to unforeseen circumstances affecting profitability(p.55)
- • Fragility of optical fiber cables requiring careful handling to avoid costly damage and downtime(p.62)
- • Intense competition pressuring market share and profitability(p.62)
- • Rapid technological change requiring continuous capital investment(p.62)
- • Slowdown in Indian economic growth reducing demand(p.79)
- • Regulatory changes and compliance uncertainties in tax and GST(p.79)
- • Customer payment delays and defaults restricting working capital(p.63)
- • Physical hazards and liquid damage disrupting operations(p.78)
- • Raw material price volatility impacting project profitability(p.77)
- • High installation costs and complex deployment challenges for fiber optic infrastructure(p.198)
- • Competition from alternative connectivity technologies including wireless broadband and satellite internet(p.198)
- • Dependence on government contract tenders and policy decisions affecting project awards(p.154)
- • Vulnerability to environmental factors and delays in project execution(p.198)
- • Exposure to monsoon and weather-related disruptions affecting project timelines(p.192)
- • Intense competition from other optical fiber laying companies(p.237)
- • Technology advancement outpacing company capabilities(p.212)
- • Service interruptions from natural calamities like floods(p.212)
- • Economic downturn affecting project demand(p.212)
- • Dependence on raw material suppliers for critical cable components(p.212)
- • Regulatory and compliance dependency affecting business operations(p.212)
- • Price competition as primary deciding factor in tender awards(p.237)
- • Government sector dependency creates revenue volatility and policy risk(p.325)
- • Regulatory and tax demands creating financial liabilities(p.313)
- • Seasonal variations impacting project execution and cash flow(p.325)
- • Competitive pressure from other infrastructure service providers(p.325)
- • Project delays and extended receivables collection cycles(p.319)
- • Interest rate and borrowing cost exposure from multiple lenders(p.311)
- • Dependence on Railway sector revenue(p.330)
- • Exposure to infrastructure and telecom sector cyclicality(p.329)
- • Impact of geopolitical conflicts on operations(p.329)
- • Exposure to raw material price volatility(p.329)
- • Risk from rapid technological change(p.329)
- • Regulatory and policy changes affecting taxation(p.329)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rama Kant Lakhotia | Promoter | 24.90% | — |
| Neena Lakhotia | Promoter | 30.16% | — |
| Nikita Lakhotia | Promoter | 16.00% | — |
| Simran Lakhotia | Promoter | 16.03% | — |
| Shree Kant Lakhotia | Promoter Group | 5.96% | — |
| Vishal Lakhotia | Promoter Group | 5.96% | — |
| Rama Kant Lakhotia | Promoter | 24.90% | — |
| Neena Lakhotia | Promoter | 30.16% | — |
| Nikita Lakhotia | Promoter | 16.00% | — |
| Simran Lakhotia | Promoter | 16.03% | — |
| Shree Kant Lakhotia | Promoter Group | 5.96% | — |
| Vishal Lakhotia | Promoter Group | 5.96% | — |
| Rama Kant Lakhotia | Promoter | — | — |
| Simran Lakhotia | Promoter | — | — |
| Neena Lakhotia | Promoter | — | — |
| Nikita Lakhotia | Promoter | — | — |
| Rama Kant Lakhotia | Promoter | 24.90% | — |
| Neena Lakhotia | Promoter | 30.16% | — |
| Nikita Lakhotia | Promoter | 16.00% | — |
| Simran Lakhotia | Promoter | 16.03% | — |
| Nikita Lakhotia | Promoter | — | — |
| Ramakant Lakhotia | Promoter | — | — |
| Rama Kant Lakhotia | Promoter | — | — |
| Neena Lakhotia | Promoter | — | — |
| Simran Lakhotia | Promoter | — | — |
| Nikita Lakhotia | Promoter | — | — |
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Rama Telecom IPO FAQs
What is the lot size of Rama Telecom IPO?
The minimum lot size of Rama Telecom IPO is 2,000 shares. One lot costs ₹1,36,000 at the cut-off price.
When does Rama Telecom IPO open and close?
Rama Telecom IPO opened for subscription on 25 Jun 2025 and closed on 27 Jun 2025.
What is the listing date of Rama Telecom IPO?
Rama Telecom IPO listed on 02 Jul 2025.