RITES slips about 8% in two sessions

The company's offer for sale (OFS) gets weak response from retail investors.

The government offered 1,25,00,000 equity shares (5% equity) via offer for sale (OFS) over two days, 27 February for non-retail investors and 28 February for retail investors and for non-retail investors who choose to carry forward their un-allotted bids.

The company later decided to exercise the oversubscription option to the extent of 39,99,852 equity shares in addition to the base offer size of 1,25,00,000. Accordingly the total offer size rose to 1,64,99,852 equity shares, representing 6.60% of the total paid up equity share capital of the company as on 31 December 2019. The floor price for the OFS was Rs 298 per share.

On Thursday (27 February 2020), the OFS received bids for 1,31,99,881 shares or 100% against the non-retail offer size of 1,31,99,881 shares.

The OFS re-opened on Friday (28 February 2020) for retail investors and non-retail investors who chose to carry forward their bids. The retail portion received bids for 2,18,193 shares or 6.61% against the retail segment offer size of 32,99,971 shares.

Shares of the public sector enterprise fell 2.19% at Rs 292.70 on Friday. The stock slipped 7.97% in two sessions from its closing high of Rs 318.05 recorded on 26 February 2020.

RITES is a public sector enterprise (PSE) and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The government's stake in RITES stood at 77.39% as on 31 December 2019.

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