The Hindu Business Line : RITES files for public issue

RITES, a multi-disciplinary public enterprise under the Ministry of Railways, involved in the transport, infrastructure and related technologies, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to enter the capital market soon with an initial public offering (IPO) of 1.4-crore equity shares of Rs 10 each for at a price to be decided through a 100 per cent book-building process.

The issue will constitute 28 per cent of the fully diluted post-issue capital of the company, said an official release. The equity shares are proposed to be listed on National Stock Exchange of India and Bombay Stock Exchange.

The issue comprises a fresh issue of up to one-crore equity shares and an offer for sale of up to 40-lakh equity shares by the Indian Government. The issue comprises a net issue to the public of up to 1.26-crore equity shares and a reservation of up to 14-lakh equity shares for subscription by eligible employees.

At present, RITES is involved in the concessioning projects in Tanzania and Mozambique, where it is engaged in the rehabilitation, operation and maintenance of the Railway network for 25 years. RITES has 51 per cent and 26 per cent stakes in these projects respectively.

Related Stories:
Rlys may divest Ircon, RITES stake

More Stories on : PSU | IPOs | Railways

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page