The Rama Telecom IPO concluded its subscription phase on June 27, 2025, and garnered a total subscription of 1.58 times, indicating moderate investor interest. The IPO, which opened on June 25, is a Book Built Issue of ₹25.13 Crores, consisting entirely of a fresh issue of 36.96 lakh equity shares.

The price band for the Rama Telecom IPO was set at ₹65 to ₹68 per equity share, and the lot size is 2,000 shares, making the minimum investment for retail investors ₹1,36,000. For High-Net-Worth Individuals (HNIs), the minimum investment was ₹2,72,000, corresponding to two lots or 4,000 shares.

If the shares are allotted at the upper price band of ₹68, the market capitalisation of Rama Telecom Limited will be approximately ₹89.75 Crores. The listing of shares is scheduled on NSE SME on or around July 2, 2025, with the allotment expected to be finalized by June 30, 2025.

Rama Telecom is a technology-driven engineering company, providing end-to-end customized networking solutions focused on optical fiber infrastructure. The firm develops sustainable and precise connectivity solutions across India using advanced telecom technologies, positioning itself at the forefront of India's digital transformation.

The company’s promoter team includes Mr. Rama Kant Lakhotia, who has 25+ years of telecom industry experience, and Ms. Simran Lakhotia, with over 5 years of expertise in administration, finance, and negotiation. Other key figures in the business include Mrs. Neena Lakhotia and Ms. Nikita Lakhotia.

Let’s look at the financial performance of Rama Telecom over the last three financial years:

• Revenue from operations:

  • FY2023: ₹3,322.46 Lakh

  • FY2024: ₹3,747.87 Lakh

  • FY2025: ₹4,247.32 Lakh

• EBITDA:

  • FY2023: ₹189.61 Lakh

  • FY2024: ₹432.11 Lakh

  • FY2025: ₹810.13 Lakh

• Profit After Tax (PAT):

  • FY2023: ₹108.34 Lakh

  • FY2024: ₹261.16 Lakh

  • FY2025: ₹552.93 Lakh

These figures show consistent year-on-year growth in both top-line and bottom-line performance, reflecting efficient operational expansion and effective cost control.

The key valuation metrics of the company for FY2025 include:

• Pre-Issue EPS: ₹5.85

• Post-Issue EPS: ₹4.19

• Pre-Issue P/E: 11.62x

• Post-Issue P/E: 16.23x

• Industry Average P/E: 35x

These numbers indicate that Rama Telecom IPO is fairly priced in comparison with its industry peers. Moreover, the Return on Capital Employed (ROCE) is 37.06%, the Return on Equity (ROE) is 10.63%, and the Return on Net Worth (RoNW) is 33.58%, which are all respectable figures in the SME segment.

The Grey Market Premium (GMP) of ₹6 suggests an expected listing price of ₹74, implying listing gains of 8.82% over the upper end of the IPO price band. While GMP provides a hint of market sentiment, it is not a regulated metric and should be used for informational purposes only.

The IPO allotment will be available for checking on June 30, 2025, via the Cameo Corporate Services Limited website, the official registrar for the issue. To check the allotment status, applicants need to:

• Visit the IPO allotment status page

• Select "Rama Telecom Limited IPO" from the dropdown

• Enter their application number, PAN, or DP Client ID

• Submit to view allotment result

The company proposes to utilize the Net Proceeds from the IPO for the following purposes:

1. ₹1,401.42 Lakhs to meet working capital requirements

2. ₹613.76 Lakhs for capital expenditure

3. General corporate purposes

4. Covering offer-related expenses

Affinity Global Capital Market Private Limited is the book-running lead manager, Cameo Corporate Services Limited is the registrar, and Asnani Stock Broker Private Limited has been appointed as the Market Maker, ensuring liquidity in the post-listing phase.

In terms of investor sentiment, the 1.58x overall subscription indicates moderate demand, typical for SME IPOs that often see stronger retail and HNI interest in the final hours. The steady growth in revenues and profits, combined with industry-relevant offerings, paints a favorable picture for Rama Telecom.

However, the IPO is best suited for risk-tolerant investors. The SME market, while offering great upside potential, also comes with increased volatility and lower liquidity compared to mainboard listings. Investors should evaluate their investment horizon and risk appetite before taking a call.

Given the company's financials, valuation, market size, and moderate GMP, we recommend that risky investors may consider subscribing to the Rama Telecom IPO for listing gains. While the IPO is fairly valued, prudent investors should monitor listing trends and broader market conditions before making a long-term commitment.

Disclaimer:
This article is prepared for educational and informational purposes only and does not constitute investment advice or solicitation. Readers should perform their own due diligence and consult with a qualified financial advisor before making investment decisions. Market investments are subject to risks, and past performance is not indicative of future results. All figures mentioned are based on public disclosures as of the date of publication and are subject to revision. The author and the publishing platform disclaim any liability for losses incurred from investments based on this information.

The Upcoming IPOs in this week and coming weeks are Travel Food Services, Cryogenic, Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.