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Centre to sell 15% stake in RITES through OFS in July
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IANS | 15 May, 2019
The government intends to sell a
further 15 per cent stake in its railways undertaking RITES India under
the Offer-For-Sale (OFS) route, according to an official announcement
on Wednesday,
The stake sale would augment the government's stake
sell-off kitty for the current fiscal by Rs 700-Rs 750 crore at the
prevailing price of RITES shares.
"The GOI (Government of India)
intends to disinvest 15 per cent paid up equity capital of RITES Ltd out
of its shareholding of 87.40 per cent, through "Offer for Sale of
shares by promoters through the stock exchanges as per Securities and
Exchange Board of India (SEBI) Rules and Regulations", the Department of
Investment and Public Asset Management (DIPAM) announcement said.
In
2017-18, the Centre came out with the RITES initial public offer (IPO)
by which it divested 12.60 per cent of its stake, which currently stands
at 87.40 per cent.
Official sources here said that the OFS could
take place in July. DIPAM has already issued RFP for appointment of
merchant bankers and selling brokers for the OFS.
At the current
share price of Rs 230, the RITES issue may fetch Rs 700-Rs 750 crore for
the government. RITES was listed at Rs 190 per share against the issue
price of Rs 185.
During the current financial year so far, Rs
2,350.25 crore have been garnered through divestments against the annual
target of Rs 90,000 crore on this count.
This year, the DIPAM
has completed disinvestment in another railway subsidiary -- RVNL.
RVNL's IPO was the first such issue in the current fiscal which fetched
the government Rs 480 crore by divesting 12.12 per cent stake in RVNL.
According
to sources, government is also looking at offering shares at a discount
to eligible employees of RITES. The extent of discount would be decided
in due course.
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