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RITES attracts modest premium on debut

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Capital Market
Last Updated : Jul 02 2018 | 5:16 PM IST

Shares of RITES settled at Rs 212.70 on BSE, a premium of 14.97% over the issue price of Rs 185 on its debut on the bourses today, 2 July 2018.

The stock listed at Rs 190 on the BSE, a premium of 2.7% over the issue price of Rs 185. The stock had hit a high of Rs 224.40 and low of Rs 190 during the day. 55.66 lakh shares were traded on the counter on the BSE.

The initial public offer (IPO) of RITES received bids for 169.43 crore shares, as against 2.52 crore shares on offer, the National Stock Exchange of India (NSE) data showed. The issue was subscribed 67.24 times. The issue opened for subscription on 20 June 2018 and closed on 22 June 2018. The price band for the issue was fixed at Rs 180 to Rs 185 per share.

The qualified institutional buyers (QIBs) category was subscribed 71.72 times. The non-institutional investors category was subscribed 194.56 times. The retail individual investors category was subscribed 15.74 times.

The offer comprised of an offer for sale of 2.52 crore shares by the Union government of India. The objects of the issue were divestment and benefits of listing to enhance its visibility and brand image and provide liquidity to the existing shareholders. The Central government owns 87.4% of total paid-up equity share capital post listing.

On a consolidated basis, RITES reported net profit of Rs 252.54 crore and net sales of Rs 936.15 crore in nine months ended December 2017.

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.

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First Published: Jul 02 2018 | 5:08 PM IST

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