Business Standard

RITES attracts modest premium on debut

Image

Capital Market

Shares of RITES were trading at Rs 206.15 at 11:09 IST on BSE, a premium of 11.43% over the issue price of Rs 185 on its debut on the bourses today, 2 July 2018.

Meanwhile, the S&P BSE Sensex was down 231.60 points or 0.65% at 35,191.88

Shares of RITES 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 207.80 and low of Rs 190 so far during the day. So far, 25.30 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.

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 02 2018 | 11:24 AM IST

Explore News