Should you subscribe to the IPO of RailTel? Hari Viswanath BL Research Bureau | Updated on February 18, 2021 While the business has its pluses, pricey valuation is a dampener Long-term investors can avoid the IPO of RailTel Corporation of India Ltd, a Miniratna Central public sector undertaking. The offer is a secondary sale of 8.7 crore shares by the Centre, representing about 27 per cent of the paid-up capital of the company. At ₹93-94, it is priced at approximately 23 times its annualised FY21 EPS (based on earnings per share for the first half of FY21 after adjusting for a one-time exceptional expense). This is not cheap given the PSU’s modest earnings growth in recent years and its relative premium valuation vs the PSU universe.