RITES IPO to hit the market on Wednesday: All you need to know

The issue consists of offer for sale of 2.52 crore equity shares by the government.

New Delhi: The initial public offer of railways consultancy firm RITES will hit the market on Wednesday.  The government has set a target of raising Rs 80,000 crore through PSU disinvestment in the current fiscal. This is lower than Rs 1.03 lakh crore raised in last fiscal.

Here is all you need to know about RITES IPO

• RITES would be the first state-owned firm to hit the IPO market in the current fiscal.
• The government aims to garner about Rs 460 crore through the share sale
• The price band for the issue has been fixed at Rs 180-185 a share.
• The government is selling 12 percent stake or 2.52 crore equity shares, including 12 lakh shares to employees.
• The IPO would open for bids on June 20 and close on June 22.
• At the upper end of the price band of Rs 185 a scrip, the IPO would fetch around Rs 460 crore to the exchequer.
• The proceeds from the offer will go to the government of India.
• The paid-up share capital of RITES currently stands at Rs 200 crore.
• The government holds 100 percent stake in the company.
• RITES equity shares are proposed to be listed on BSE and NSE.
• Elara Capital India, IDBI Capital Markets & Securities, SBI Capital Markets and IDFC Bank are lead managers to the issue.
• Link Intime India Private Ltd is the registrar.