Rama Telecom IPO: Issue subscribed 11x on day 1; check all details

Till 5 pm, the IPO received an 11.30 times subscription, garnering bids for 4,17,57,840 shares as against the 36,96,000 shares on offer, according to data on the NSE website.

The IPO, priced in the range of ₹65-68 per equity share, will remain open until June 27. At the upper end of the price band, Rama Telecom will fetch about ₹25.13 crore from the issue, the company had said.

Shares of the company will be listed on the NSE's SME platform Emerge, and the investors can bid for a minimum of 2,000 equity shares and in multiples thereof, it added.

The IPO is entirely a fresh issue of 36.96 lakh shares with a face value of ₹10 each.

Net proceeds from the IPO will be utilised for capital expenditure, working capital requirements and general corporate purposes.

"The capital raise will be used to enhance our execution capacity, upgrade equipment, and adopt relevant technologies to support ongoing and upcoming projects.

"It will also help us contribute more effectively to initiatives such as the Kavach system, FTTH deployments, and SCADA networks," Rama Kant Lakhotia, Managing Director of Rama Telecom, said.

The company reported a revenue of ₹41.75 crore and a profit after tax of ₹5.53 crore in FY25.

Affinity Global Capital Market is the book running lead manager, and Cameo Corporate Services is the registrar to the IPO.

Rama Telecom specialises in optical fibre cable deployment, railway telecom systems, FTTH (fibre to the home), SCADA (Supervisory Control and Data Acquisition) integration, and network commissioning.

Incorporated in 2004, Rama Telecom operates as a specialised provider of optical fibre communication systems and networking solutions, primarily serving industries like railways, telecommunications, petroleum and airports. The company has established itself as a pan-India operator, currently working across multiple states.