Rama Telecom Limited, a technology-driven engineering firm with a specialized focus on optical fiber networking solutions, has successfully closed its Initial Public Offering (IPO). The company raised ₹25.13 Crores through a Book Built Fresh Issue of 36.96 lakh shares, and the IPO was subscribed 1.58 times by the end of its bidding window on June 27, 2025.

The IPO aimed to provide financial resources for working capital, capital expenditure, general corporate needs, and issue expenses, as the company positions itself as a critical player in India’s telecom infrastructure growth story.

IPO Timeline and Details:

• IPO Opened On: June 25, 2025

• IPO Closed On: June 27, 2025

• Allotment Finalization Date: June 30, 2025 (Monday)

• Tentative Listing Date: July 2, 2025 (Wednesday)

• Exchange: NSE SME

• Issue Size: ₹25.13 Crores (Fresh Issue Only)

• Price Band: ₹65 – ₹68 per share

• IPO Lot Size: 2,000 shares

• Retail Investment Minimum: ₹1,36,000

• HNI Investment Minimum: ₹2,72,000 (2 lots)

• Post-Issue Market Cap (at upper band): ₹89.75 Crores

Market Intermediaries:

• Lead Manager: Affinity Global Capital Market Private Limited

• Registrar: Cameo Corporate Services Limited

• Market Maker: Asnani Stock Broker Private Limited

Subscription Status: Final Day Figures

As of 7:00 PM on June 27, 2025, Rama Telecom IPO was subscribed 1.58 times. This shows moderate investor interest, especially from non-institutional investors (NIIs) and retail categories, though not overwhelming.

While the oversubscription wasn’t extremely high, the full subscription suggests that investors found value in the company’s proposition, especially considering its growth in financials and optical fiber expertise.

Grey Market Premium (GMP) Trend

• GMP as of June 24, 2025: ₹6

• IPO Price (Upper Band): ₹68

• Expected Listing Price: ₹74

• Potential Listing Gain: 8.82%

The Grey Market Premium (GMP) indicated a listing pop of ~9%, which may attract short-term investors eyeing listing gains. However, GMP is unofficial and speculative, and actual listing performance can vary.

Anchor Investor and Institutional Interest

No formal anchor book was announced for Rama Telecom IPO, which is typical for smaller SME IPOs. However, the moderate subscription level suggests some confidence from HNIs and retail investors in the company’s fundamentals and growth outlook.

Company Overview and Business Model

Rama Telecom is an engineering-driven enterprise that designs, installs, and maintains customized optical fiber-based networking infrastructure. It aims to digitally empower India’s telecom backbone, especially in underserved regions, by enabling fast and sustainable connectivity.

Its key strengths include:

• In-house expertise in optical networking engineering

• End-to-end project execution across telecom verticals

• Strategic focus on sustainability and long-term service reliability

Promoters and Leadership

The company is spearheaded by Mr. Rama Kant Lakhotia, who brings over 25 years of experience in telecom infrastructure and engineering. He is supported by:

• Ms. Simran Lakhotia – Finance and Administration expert with 5+ years of experience

• Mrs. Neena Lakhotia and Ms. Nikita Lakhotia – Supporting functions in management and strategy

The leadership team blends deep industry experience and a next-gen operational vision, which is critical in scaling telecom businesses amidst India’s rapid digital infrastructure growth.

Financial Performance Summary

Rama Telecom has delivered a steady upward trajectory in revenue and profitability:

Revenue from Operations:

• FY25: ₹4,247.32 Lakh

• FY24: ₹3,747.87 Lakh

• FY23: ₹3,322.46 Lakh

EBITDA:

• FY25: ₹810.13 Lakh

• FY24: ₹432.11 Lakh

• FY23: ₹189.61 Lakh

Profit After Tax (PAT):

• FY25: ₹552.93 Lakh

• FY24: ₹261.16 Lakh

• FY23: ₹108.34 Lakh

This reflects a CAGR of over 80% in PAT, driven by better margin management and revenue scale.

Valuation and Key Financial Ratios

At the IPO upper price of ₹68 per share:

• Pre-Issue EPS (FY24): ₹5.85

• Post-Issue EPS (FY24): ₹4.19

• Pre-Issue P/E: 11.62x

• Post-Issue P/E: 16.23x

• Industry Average P/E: ~35x

Return Ratios:

• ROCE (FY24): 37.06%

• ROE (FY24): 10.63%

• RoNW: 33.58%

The post-issue P/E is lower than industry average, which indicates the IPO is fairly valued, though not at a steep discount. The ROCE above 35% shows efficient capital deployment, while ROE remains modest but improving.

IPO Objectives and Fund Utilization

The proceeds from the IPO will be used for:

1. ₹14.01 Crores: Working Capital Needs

2. ₹6.13 Crores: Capital Expenditure

3. Remaining: General Corporate Purposes and Issue Expenses

The funds will help the company scale projects, invest in equipment, and execute long-term fiber deployment projects, especially as India pushes toward 5G and rural broadband initiatives.

Allotment Status: How to Check

Investors can check the allotment status from June 30, 2025 on the registrar’s (Cameo Corporate Services) website:

Steps to follow:

1. Visit Cameo IPO Allotment Page

2. Select "Rama Telecom Limited IPO" from the dropdown

3. Enter Application Number, PAN, or DP Client ID

4. Click on Submit to view your status

Expert View & Recommendation

With:

• Consistent revenue and PAT growth

• Scalable telecom infrastructure potential

• Reasonable valuations

• GMP suggesting moderate listing gains

• Low float and SME momentum

We recommend that risk-tolerant investors may apply for listing gains, but should remain cautious post-listing due to potential illiquidity in SME stocks.

While fundamentals are solid, market conditions, SME segment volatility, and modest subscription levels suggest that only investors with high-risk appetite and short-term listing intent should consider entering.

Conclusion

The Rama Telecom IPO is a mid-sized SME offer with strong fundamentals, leadership experience, and a growth-oriented outlook in the telecom networking space. The ₹6 GMP signals possible 8–9% listing upside, but sustained long-term performance will depend on the execution of capital plans and scalability.

Given the moderate demand, fair pricing, and sector tailwinds, this IPO may offer short-term listing benefits, especially in a bullish small-cap sentiment environment.

Disclaimer: This article is for educational purposes only and should not be treated as financial advice. Investing in IPOs, especially in the SME segment, carries risks. Please consult a SEBI-registered financial advisor before making any investment decisions.

The Upcoming IPOs in this week and coming weeks are Anthem Biosciences, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS, Crizac, .

The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India.

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