Rama Telecom Limited IPO

Rama Telecom Limited is a telecom infrastructure and engineering services company based in India. The company specializes in providing end-to-end telecom solutions, including optical fiber cable (OFC) laying, network installation, and maintenance services for major telecom operators and government agencies. With a focus on turnkey project execution, it handles fiber rollout, horizontal directional drilling (HDD), tower installation, and active equipment deployment.

RHP DRHP

Min Investment

₹1,36,000

Lot Size

2,000 Shares

Price Range

₹68.0

Issue Size (₹ Cr.)

₹25.13

IPO Type

NSE SME

Key Metrics

Face Value

₹ 10

GMP

₹ 0.0

Subscription

1.09x

EPS

₹ 4.19

P/E Ratio

16.23 x

RoNW

33.58%

ROE

10.63%

Debt to Equity (₹ Cr.)

0.30

Timeline

IPO Opened25/06/2025Wednesday

IPO CloseToday

Allotment30/06/2025Monday

Refund01/07/2025Tuesday

Listing02/07/2025Wednesday

Strengths

Established Partnerships with Leading OEMs The company has built strong working relationships with key telecom equipment manufacturers like Nokia, Tejas Networks, and D-Link. These alliances enhance its ability to deliver reliable telecom and networking solutions.
Specialized Technical Capabilities Rama Telecom has technical expertise in critical infrastructure services such as optical fiber cable (OFC) laying and horizontal directional drilling (HDD), which are vital for telecom network deployment.
Client Base Includes Major Telecom Operators The company serves top telecom companies in India including Reliance Jio, Bharti Airtel, BSNL, and Vodafone Idea. These high-profile clients reflect its industry credibility and execution capabilities.
Pan-India Operational Footprint With projects spread across different states, the company has demonstrated its ability to execute telecom infrastructure work at scale and across varied geographies.
Consistent Financial Performance Rama Telecom has shown steady growth in revenue and profitability. Its margins and return metrics have improved, supported by operational efficiency and repeat business from key clients.

Weaknesses

High Dependence on a Few Key Clients A significant portion of revenue comes from a limited number of telecom companies. Any loss of a major client or delay in projects can directly impact financial stability.
Project-Based Revenue Model The company’s earnings are largely driven by project execution timelines. Delays in government approvals, permissions, or clearances can affect cash flow and profitability.
Limited Product Diversification Rama Telecom’s operations are primarily focused on telecom infrastructure and related services. This narrow focus increases exposure to risks within the telecom sector alone.
Working Capital-Intensive Operations Execution-heavy projects require substantial working capital, especially in terms of upfront costs for labor, materials, and logistics before payments are received.
Regulatory and Policy Risks Being part of a highly regulated sector, the company is exposed to changes in telecom policies, licensing norms, or government tenders which could affect business operations.