RITES shares soar 15% in market debut

New Delhi: Shares of railways consultancy firm RITES surged 15 percent over its issue price of Rs 185 in its debut trade on Monday.

After listing at Rs 190, a gain of 2.70 percent from the issue price, the stock surged 21.29 percent to Rs 224.40 in intra-day trade on the BSE. It finally ended at Rs 212.70, reflecting a sharp gain of 14.97 percent.

On the NSE, shares of the company ended at Rs 211.30, rising 14.21 percent from the issue price. The stock had listed at Rs 190. During the day, it soared 21.35 percent to Rs 224.50.

The company's market valuation stood at Rs 4,254 crore.

In terms of equity volume, 55.66 lakh shares of the company were traded on the BSE and over 4 crore shares changed hands on the NSE during the day.

The Rs 466-crore IPO of RITES was open during June 20-22 and was in a price band of Rs 180-185.

RITES garnered strong investor demand, with the issue getting subscribed more than 67 times. Qualified Institutional Buyers (QIBs) portion was subscribed 71.97 times, non-institutional investors 193.04 times and retail 15.17 times.

RITES is the first state-owned firm to hit the IPO market in the current financial year.

Elara Capital (India), IDBI Capital Markets & Securities, IDFC Bank and SBI Capital Markets managed the issue.