Two PSUs file IPO papers with Sebi

As many as two state-owned companies -- RITES Ltd and Mishra Dhatu Nigam Ltd -- have filed draft papers with markets regulator Sebi to float initial public offerings so far this week.
Incorporated by the railways ministry, RITES provides transport consultancy and engineering services, while Mishra Dhatu Nigam (MIDHANI) comes under the defence ministry.
The move comes after another state-run Indian Renewable Energy Development Agency (IREDA) approached the markets regulator last month with its IPO papers.
The proposed initial public offers (IPOs) would help the government to meet its ambitious disinvestment target of Rs 72,500 crore for the current fiscal.

RITES has filed its draft red herring prospectus (DRHP) with Sebi on Monday, while MIDHANI has approached the markets regulator on Tuesday.
The public issues will help the companies in achieving the benefits of listing, enhance visibility as well as brand image and provide liquidity to shareholders.

Going by the draft papers, RITES' IPO will see sale of 2.4 crore equity shares, amounting to 12 per cent, by the promoter.
According to merchant banking sources, the public issue is expected to fetch around Rs 600 crore.
Elara Capital (India) Pvt Ltd, IDBI Capital Markets and Securities Ltd, IDFC Bank Ltd and SBI Capital Markets Ltd will manage the company's IPO.

RITES had a profit after tax (PAT) of Rs 362 crore in 2016-17 and a revenue from operations was at Rs 1,354 crore.
Finance Minister Arun Jaitley had announced in the Union Budget in February last year the government's plan to list rail PSUs.
RITES, RVNL, IRCON, Indian Railway Finance Corp (IRFC) and Indian Railway Catering and Tourism Corporation Ltd (IRCTC) are the public sector undertakings into the railways.
The public issue of MIDHANI will see sale of up to 46,835,000 equity shares, or 25 per cent stake, by the company's promoter.
It is engaged in the production of metals and alloys as part of an import substitution strategy, which is designed to reduce India's reliance on foreign suppliers and achieve self-sufficiency.

During 2016-17, the firm had posted a profit after tax of Rs 126.31 crore and a total revenue of Rs 833.09 crore.
SBI Capital Markets and IDBI Capital Markets and Securities Ltd will be the merchant bankers for the issue.
In April last year, the Cabinet had cleared the disinvestment of the PSU and thereafter DIPAM had invited bids from merchant bankers and legal advisors for managing the stake sales.