Receives bids for 5.32 crore shares
The initial public offer (IPO) of RITES received bids for 5.32 crore shares today, 21 June 2018, as against 2.52 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 17:00 IST. The issue was subscribed 2.11 times. The issue opened for subscription on 20 June 2018 and closes on 22 June 2018. The price band for the issue has been fixed at Rs 180 to Rs 185 per share.
Incorporated in 1974 by the Ministry of Railways (MoR), RITES (earlier known as Rail India Technical & Economic Services) is a mini ratna (Category-I) Schedule 'A' public sector enterprise offering transport and engineering consultancy in India.
The offer comprises offer for sale of 2.52 crore shares by the Union government of India. At the lower price band of Rs 180 per share, the size works out to Rs 453.60 crore and Rs 466.20 crore at the higher price band of Rs 185. The minimum bid lot is 80 equity shares and in multiples.
The objects of the issue are divestment and benefits of listing to enhance its visibility and brand image and provide liquidity to the existing shareholders. The Central government will own 87.4% of total paid-up equity share capital post listing.
On a consolidated basis, RITES reported net profit of Rs 254.85 crore and net sales of Rs 936.15 crore in nine months ended December 2017.
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