📡 At a Glance (50 words)
Rama Telecom Ltd is raising ₹25.13 Cr via SME IPO at a price band of ₹65–68. They lay optical fibre cables for Indian Railways, Airtel, and Jio. With 112% PAT growth and zero buzz from brokers, it’s an infra play disguised as tech. Bookbuilding toh hai, but is it built to last?
🧵 1. What’s the Rama in Rama Telecom?
No, they don’t sell SIM cards. Or 5G.
Rama Telecom is a telecom infra contractor, specializing in:
- 📡 Optical Fibre Cable (OFC) laying
- 🛠️ Horizontal Directional Drilling (HDD)
- 🏗️ Network design, commissioning & infra deployment
- 📞 Installation of mobile towers, routers, switches
- 💻 Data communication & broadband setup
They’re not building the internet… they’re just digging under it.
📍 Clients include:
- Indian Railways
- Airtel
- IOCL
- AAI
- Jio, BSNL, Vi, Tata Comm (via OEM partnerships)
They’re also certified resellers/distributors for:
Nokia, Tejas, D-Link, Mrotek, Puncom… (basically, if it blinks and transmits data, they’ve worked on it.)
💰 2. IPO Fund Use – Capital Ex & Cabling
Here’s how they plan to spend the ₹25.13 Cr:
| Objective | ₹ Cr |
|---|---|
| 🧾 Working Capital | 14.01 |
| 🔧 Capital Expenditure | 6.14 |
| 🧯 GCP & Issue Expenses | Balance |
This is a “bid → win → execute → get paid” model. And infra work needs cash upfront. So… no surprises here.
📊 3. Financials – Is This Network Stable?
FY25 vs FY24 vs FY23
| Metric | FY23 | FY24 | FY25 | Growth FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 33.22 | 37.48 | 42.47 | +13.3% |
| PAT (₹ Cr) | 1.08 | 2.61 | 5.53 | +112% |
| EBITDA | 1.65 | 4.10 | 8.00 | +95% |
| Net Worth | 6.92 | 9.53 | 16.46 | +72.7% |
📉 PAT margin improved from 7% to 13%
📦 Debt = ₹5 Cr → manageable
👷♂️ Headcount: 40 people (including promoters)
Surprisingly tight ops for a business that installs towers and digs roads. Infrastructure meets lean startup?
🧮 4. Valuation – Is ₹68 a Signal or Noise?
- 🏷️ Market Cap: ₹89.76 Cr
- 📈 FY25 EPS (Post-IPO): ₹4.19
- 📊 P/E = 16.23x
- 📚 P/B = 3.91x
- 💸 RoNW = 33.58%
Compare that to infra peers:
| Peer Type | P/E Range |
|---|---|
| HFCL (listed) | ~35x |
| STL (Sterlite) | ~22x |
| SME Infra players | 10–17x |
🧠 Fair Value Range:
Assuming fair P/E band of 13–17x on ₹4.19 EPS
✅ FV Range = ₹54 – ₹71
At ₹68, it’s priced just below the upper limit. Not crazy, not cheap.
⚙️ 5. Strengths & Red Flags – Wires & Warnings
✅ Strengths
- 📡 Infra + recurring projects = predictable revenue
- 🔄 112% PAT growth = real progress
- 🧠 Experienced promoter group
- 🤝 Partnerships with OEMs like Nokia, Tejas
- 🇮🇳 Infra + Digital Bharat = demand pipeline
❌ Risks
- 💣 Zero buzz from analysts/brokers
- 🚧 Infra projects = delays, receivables, red tape
- 📉 PAT may not sustain 100%+ growth
- 🪛 40 people? Slightly under-resourced for PAN-India ops
- 📬 SME IPO = Limited liquidity post-listing
📋 6. IPO Details – Fibre to the Fund
| Detail | Value |
|---|---|
| IPO Size | ₹25.13 Cr |
| Price Band | ₹65 – ₹68 |
| Lot Size | 2,000 shares |
| Min Investment | ₹1,36,000 (Retail) |
| Market Maker | Asnani Stock Broker |
| Listing | NSE SME (July 2, 2025) |
| Promoter Holding (Post) | ~72.00% (est.) |
| Registrar | Cameo Corporate |
💡 Bookbuilding IPO — so cutoff bidding recommended.
📞 7. EduInvesting Verdict – Should You Dial Into This?
Rama Telecom isn’t your next tech unicorn. But it’s:
- 👷 A real infra contractor
- 💸 Growing decently
- 🧾 Clean balance sheet
- 🧠 Repeat clients & OEM backing
However:
- No subscription buzz
- Growth might plateau post-FY25
- Margins are decent, not juicy
📲 Verdict:
- Apply only if you like infra plays with stable ROE and predictable contracts
- Not for FOMO chasers — this is Bharat Infra, not AI Saas
🏷️ Tags:
Rama Telecom IPO, SME IPO June 2025, Optical Fibre contractor IPO, Infra IPO India, NSE SME bookbuilding IPO, Telecom infra SME, broadband India stock, SME IPO review
✍️ Written by Prashant | 📅 June 23, 2025
