Govt to further dilute stake in RITES via OFS

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SME Times News Bureau | 22 Nov, 2019
The disinvestment revenue generation has picked speed as days after the Cabinet decision to privatise four blue-chip PSUs including BPCL, the Centre now proposes to sell 2.50 crore shares of Railways' arm - RITES, representing 10 per cent of the total paid-up equity capital of the company.

On Friday the sale will be to retail investors, through the offer-for-sale mechanism on the BSE and the NSE, RITES told the exchanges. The railway consultancy and engineering firm had posted profits of Rs 237.21 crore for the September quarter as against a profit of Rs 111.87 crore in the corresponding quarter last year.

The issue, with a base size of Rs 733.50 crore, has an option to additionally sell up to 1.25 crore shares in case of oversubscription. The floor price has been fixed at Rs 293.50. Marketmen will closely monitor the response to the issue.

The government of India, (promoter) of RITES proposes to sell up to 2.50 crore equity shares, in aggregate representing 10 per cent of the total equity share capital of the company on November 22, 2019 (for non-retail investors only) and on November 25, 2019 (for retail investors and for non-retail investors who choose to carry forward their unallotted bids), with an option to additionally sell up to 1.25 crore equity share (representing 5 per cent of the total share capital of the company) through offer-for-sale (OFS).

The floor price for the OFS is Rs 293.50 per share.