Despite the resistance from the left parties, the government is going to go ahead with the IPO or initial public offering of RITES, a company which works under the Ministry of Railways.
The primary business function of RITES is to provide expert level consultancy which is targeted on the transportation, infrastructure and similar related technologies. As far as the experience is concerned, the company is quite rich in it. Has a great experience of delivering several projects in as many as 62 countries across the globe.
Last month, it was the state run REC or Rural Electrification Corporation which came out with 156 million shares through the IPO and managed to raise more than 16 billion Rs. The government seems to use the easiest way to collect money.
As far as the offer is concerned, there are 14 million shares which will be offered by the government through the RITES IPO. Out of this, 10 million shares will be created afresh, while the government will sell around 4 million shares from its part. The government currently holds 100% of the company. After the IPO, its share will be down to 72%.
As of now, no information is available about the price band of the RITES IPO. But overall the RITES IPO is expected to raise 4 billion Rs. or 4000 million Rs. If we go by that calculation, the share price for RITES comes to approximately 285 Rs. per share.
| As no listing date is finalized, Let’s see what the RITES IPO comes out with. Try your luck, see what this random stock market has for you! | Table of Contents |
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