The Rs 446 crore Railways consultancy firm RITES opened its initial public offering for subscription on Wednesday. RITES (Rail India Technical and Economic Services) is the first state-owned company to hit the IPO market in this financial year.
With the sale, the government plans to garner around Rs 460 crore. The bidding that opened today will continue till June 22. Here is all that you need to know about RITES and the listing
What is RITES?
RITES (Rail India Technical and Economic Services) is a wholly-owned government company, Miniratna (Category – I) Schedule ‘A’ public sector enterprise. With a span of over 44 years, the company provides an array of services in the fields of transport, infrastructure and related technologies. It is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).
What is the RITES IPO listing?
In the RITES IPO, the government is selling 12 per cent stake or 2.52 crore equity shares, including 12 lakh shares reserved for employees. Bids can be made for minimum 200 equity shares and in multiples of 200 shares thereafter. Shares will be listed on both the NSE and the BSE.
What is the price per share of RITES IPO?
The government has fixed a price band of Rs 180-185 per share for the Initial Public Offering (IPO). The government expects to raise around Rs 460 crore from the market.
Till when is the RITES IPO offer open?
The bidding started on June 210, 2018 (today) and will continue till June 22. The proceeds from the offer will go to the government of India.
Why the RITES IPO listing and what next?
The move comes a year after Finance Minister Arun Jaitley announced Railways’ plans to list its subsidiaries post the merger of the railway budget with the Union budget. Rail Vikas Nigam (RVNL), Indian Railway Finance and IRCON International are expected to be next on the radar of the Department of Investment and Public Asset Management (DIPAM) for a probable IPO and subsequent listing.
“After the RITES, the government will move forward with the listing process of the two PSUs in the July-September quarter,” the official said.
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