The RITES initial public offer (IPO) received 60% subscription on the first day of bidding process yesterday. The Rs 466-crore IPO received bids for 1.5 crore shares against the issue size of 2.52 crore shares. The portion mean for qualified institutional buyers (QIBs) was subscribed 0.02 times, non-institutional investors 0.19 times and retail investors 1.64 times.
The government is selling its 12% stake in the Miniratna firm, which is a leading player in the transport consultancy and engineering sector. RITES is the first state-owned company to hit the IPO market in the current fiscal.
The RITES stock is available in a price band of Rs 180-185 per share. The IPO closes on June 22.
The paid-up share capital of RITES currently stands at Rs 200 crore. The government holds 100 per cent stake in the company.
The shares are available in a market lot of 80. Around 2.52 crore equity shares of Rs 10 (face value) are being offered for sale.
The book running lead managers for the issue are Elara Capital (India) Ltd, IDBI Capital Markets & Securities Ltd, IDFC Bank Ltd and SBI Capital Markets Ltd.
Discount of Rs 6 per share is being offered to retail investors and employees. 12 lakh shares in the issue will be offered to employees.