Rama Telecom IPO to Open on June 25th
By Ankur Chandra | Updated at: Sep 29, 2025 09:09 PM IST
Tuesday, June 24, 2025: Rama Telecom Limited, a Kolkata-based company specialising in telecom engineering solutions, is all set to launch its SME Initial Public Offering (IPO) tomorrow, June 25, 2025. The company aims to raise capital through a fresh issue of 36,96,000 equity shares on the NSE Emerge platform. The price band for this IPO has been set between ₹65 to ₹68 per share, with a minimum application lot size of 2,000 shares. The subscription window for the IPO will remain open until June 27, 2025.
IPO Snapshot: All You Need To Know
| Detail | Info |
|---|---|
| Issue Opens | June 25, 2025 |
| Issue Closes | June 27, 2025 |
| Price Band | ₹65 – ₹68 |
| Lot Size | 2,000 shares |
| Issue Size | ₹25.13 Cr (at upper band) |
| Fresh Issue | 36,96,000 equity shares |
| Offer Type | 100% Fresh Issue |
| Market Maker | Asnani Stock Broker Pvt Ltd |
| Listing Exchange | NSE Emerge |
| Allotment Date (Tentative) | July 1, 2025 |
| Listing Date (Tentative) | July 3, 2025 |
| Lead Manager | Affinity Global Capital Market Pvt Ltd |
| Registrar | Cameo Corporate Services Ltd |
Company Overview
Established in 2004, Rama Telecom Limited offers comprehensive telecom networking infrastructure solutions. Their expertise lies in optical fibre deployment, ducting, and maintenance. The company serves a diverse client base, including Indian Railways, various telecom service providers, and entities within the airport and petroleum sectors.
Rama Telecom has successfully executed projects across multiple regions, including Telangana, West Bengal, and other parts of India, consistently focusing on leveraging technology for sustainable networking solutions. Their business model includes services like Horizontal Directional Drilling (HDD) for underground installations and excavation work where HDD is not feasible. They also provide OFC maintenance, STM and MUX installation and commissioning, cable blowing, quad and OFC laying, splicing, earthing, dismantling of towers, and CCTV and IP-BAX system installation. For clients like Airtel, they also handle broadband maintenance and copper-to-optical fibre (OFC) upgradation.
Financial Highlights (Restated Consolidated)
The company has demonstrated strong financial growth over the past three fiscal years:
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations | ₹4,178.58 lakh | ₹3,708.65 lakh | ₹3,314.18 lakh |
| Profit After Tax | ₹552.93 lakh | ₹261.17 lakh | ₹108.34 lakh |
| EBITDA | ₹728.13 lakh | ₹380.63 lakh | ₹152.58 lakh |
| Net Worth | ₹1,646.49 lakh | ₹953.36 lakh | ₹692.40 lakh |
| EPS (Basic/Diluted) | ₹5.85 | ₹2.77 | ₹1.15 |
| Return on Net Worth (RONW) | 33.57% | 27.41% | 15.64% |
| Total Assets | ₹3,360.85 lakh | ₹2,338.36 lakh | ₹2,076.89 lakh |
At the upper end of the price band (₹68 per share), the company’s post-issue valuation is projected to be approximately ₹89.75 crore.
Promoters and Shareholding
The IPO consists entirely of a fresh issue of shares. Before the IPO, the company’s promoters Mr. Rama Kant Lakhotia, Ms. Simran Lakhotia, Mrs. Neena Lakhotia, and Ms. Nikita Lakhotia collectively held 94.08 lakh shares, representing 98.98% of the pre-issue shareholding. Following the IPO, the promoter holding is expected to be diluted to approximately 71.11%.
Use of IPO Proceeds
According to the RHP, net proceeds will be utilised for:
- Working capital needs: ₹1,401.42 lakh
- Capital expenditure: ₹613.76 lakh
- General corporate purposes and issue expenses
Rama Telecom IPO Risk Factors
- High dependency on large clients (especially Indian Railways)
- Past delays in GST, PF, and ESI filings
- Working capital-intensive business model
- Pending tax litigations totalling over ₹130 lakh
What to Watch
- The RHP does not disclose the Grey Market Premium (GMP). As of June 24, 2025, some unofficial sources indicate a GMP of ₹4, suggesting an estimated listing price of ₹72 (5.88% profit). However, GMP is highly volatile and unofficial.
- It’s important to note the absence of any anchor investor participation in this IPO.
- Rama Telecom is positioned as a high-growth, asset-light telecom engineering company operating in a vital infrastructure sector.
- The IPO is launching with the backing of strong FY25 earnings and comes at a time when sentiment for SME IPOs is generally healthy.
What’s Next?
Investors can subscribe to Rama Telecom’s IPO starting June 25, with allotment expected on July 1 and listing scheduled for July 3. Backed by robust FY25 growth and a presence in critical telecom infrastructure, the IPO may appeal to risk-tolerant investors seeking exposure to SMEs. However, concerns such as client concentration, past regulatory delays, and a lack of anchor investors demand caution. Watch the GMP movement, subscription status, and broader market mood closely over the next three days before making a decision.
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