Rama Telecom IPO Day 1: Check GMP, Subscription Status, Offer Size, Price Band And More

Telecom sector player Rama Telecom launched its initial public offering worth Rs 25.13 crore on Wednesday, June 25. The NSE SME issue comprises an entirely fresh issue of 36.96 lakh shares.

Established in July 2004, Rama Telecom Ltd. offers customised end-to-end networking solutions in telecom and data communications. The company specialises in optical fibre laying and infrastructure development.

The company has set aside 7,36,000 (19.91%) shares for Qualified Institutional Buyers (QIBs), 8,34,000 (22.56%) shares for Non-Institutional Investors (NIIs) and 19,40,000 (52.49%) shares for the retail category.

The IPO price band has been fixed at Rs 65 to Rs 68 per share. 

The minimum lot size for retail investors is 2,000 shares, amounting to a minimum investment of Rs 1,30,000. High Net-worth Individuals (HNIs) need to apply for at least 4,000 shares, bringing their total investment amount to Rs 2,72,000.

Affinity Global Capital Market is the lead manager for the Rama Telecom IPO and Cameo Corporate Services Ltd. is the registrar. Asnani Stock Broker Private Ltd. is the market maker for the issue.

Rama Telecom IPO subscription is open till June 27. Allotment of shares is expected to be finalised on June 30.

Rama Telecom IPO listing has been tentatively fixed for July 2. Shares of the company will be listed on the NSE SME platform.

The IPO has been subscribed 0.33 times as of 1:39 pm on Wednesday

Qualified Institutions: 1 time

Non-Institutional Buyers: 0.11 times

Retail Investors: 0.16 times

*The subscription status will be updated at regular intervals.

Rama Telecom plans to use the IPO proceeds mainly for working capital needs and capital expenditure. The remaining funds will be used for general corporate purposes to support business operations.

Rama Telecom SME IPO GMP stood at Rs 5 at 12:32 p.m. on June 25. The latest grey market premium indicates listing of shares at an estimated price of Rs 73 apiece, at a premium of 7.35% over the upper band of the issue price.

Note: GMP does not represent official data and is based on speculation.

Rama Telecom reported strong growth in FY25, with revenue rising to Rs 42.47 crore from Rs 37.48 crore in FY24. Its Profit After Tax increased to Rs 5.53 crore in FY25, up from Rs 2.61 crore in the preceding fiscal.  

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.