Rites IPO fully subscribed on Day 2

By: | Published: June 22, 2018 1:03 AM

The Initial Public Offer (IPO) of RITES was fully subscribed by 2.11 times on Thursday, the second day of the offer, with investors bidding for 5.32 crore shares of the 2.52 crore shares offered to them.

Rites IPO fully subscribed on Day 2

The Initial Public Offer (IPO) of RITES was fully subscribed by 2.11 times on Thursday, the second day of the offer, with investors bidding for 5.32 crore shares of the 2.52 crore shares offered to them. Qualified Institutional Buyers bid for 0.32 times the shares offered to them, high net worth individuals bid for 0.48 times their allocation, retail investors 5.59 times and employees bid for 0.56 times of their allocation.

RITES has set a price band of Rs 180 to Rs 185 per share for its initial public offering (IPO). The 100% offer for sale constitutes 12.60% of the post-offer paid-up capital of the company, and will see the stake of government of India decline from 100% to 87.4 %, post the offer. The IPO is a part of the government’s disinvestment plan and all the proceeds from the proposal will go to the government.

RITES has presence as a transport infrastructure consultancy organization in the railway sector. The company also provides consultancy services across other infrastructure and energy markets sector including urban transport, roads and highways, ports, inland waterways, airports institutional buildings, rope ways and renewable energy.

The company’s revenue from operations on a consolidated basis for the financial year 2015,2016 and 2017 and the nine months ended December 31,2017 amounted to Rs 1,012 crore, Rs 1,090 crore, Rs 1,353 crore and Rs 936 crore, respectively. The company’s profit after tax was Rs 312 crore, Rs 282 crore, Rs 361 crore and Rs 252 crore, respectively, for the same periods.

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