RITES lists on bourses with 2.7% premium at Rs 190

Posted on by KNBT

NEW DELHI: Railways consultancy firm RITES listed on the stock exchange on Monday after the firm concluded a successful Initial Public Offering (IPO).

The scrip got listed at Rs 190, with a 2.70 per cent premium on the issue price. At 10.25 am, the stock was up 3 per cent.

The government’s first divestment in the current fiscal, in the form of RITES IPO got oversubscribed nearly 67 times. RITES IPO was open during June 20-22 and was in a price band of Rs 180-185.

Elara Capital (India), IDBI Capital Markets & Securities, IDFC Bank and SBI Capital Markets were the book running lead managers to the issue.

The institutional part in the RITES offer was subscribed 72 times. The high net worth individual (HNI) portion was subscribed 195 times and the retail part nearly 15 times.

Only the portion reserved for its employees was subscribed slightly less than the full figure, official data showed.

Commenting on the success of the offer, RITES CMD Rajeev Mehrotra said that the overwhelming response came on the back of the company’s history of strong growth over the last four decades. And the company would be able to meet investors’ expectations in times to come.

In February last year, finance minister Arun Jaitley had announced in the Budget that the government would divest stakes in at least three railway assets — IRCTC, IRFC, IRCON. Later, RITES was added to the list of divestment targets. Even Rail Vikas Nigam, another PSU under the railways, may soon launch its IPO, having obtained the regulatory nod last month, merchant bankers said.

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