Govt plans to sell 15% in RITES via OFS; to fetch about Rs 700 cr

New Delhi: The government is planning to divest up to 15 percent stake in railway PSU RITES through an offer for sale (OFS), which could fetch around Rs 700 crore to the exchequer.

Railways consultancy firm RITES got listed on the bourse in July 2018 after it raised about Rs 466 crore through an initial public offering (IPO), which got subscribed 67 times. The stock got listed at Rs 190 on the bourses, against the issue price of Rs 185.

"The Government of India is considering to divest 15 percent paid up equity share capital of RITES out of its shareholding of 87.40 percent in the domestic market through OFS of shares by promoters through stock exchanges," the Department of Investment and Public Asset Management (DIPAM) said.

DIPAM also invited Expression of Interest (EoI) from merchant bankers by June 6, to assist and advise the government in the sale process.

Shares of RITES were trading at Rs 233.95, down 3.61 percent on the BSE.

At the current market price, sale of 15 percent stake in RITES would fetch around Rs 700 crore to the government.

The government has budgeted to raise Rs 90,000 crore from CPSE disinvestment in current fiscal. It has so far raised Rs 2,350 crore from IPO of Rail Vikas Nigam Ltd (RVNL) and sale of 'enemy property'

Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.