BENGALURU: The government plans to sell 2.5 crore shares, or a 10% stake, in public sector engineering consultancy company RITES valued at around Rs 745 crore through the stock exchanges as part of its disinvestment programme.
The issue comprises 1.25 crore shares (5% stake) with an option to sell an additional 1.25 crore shares based on demand. The floor price has been fixed at Rs 298 per share — a discount of 6% to Wednesday’s close of Rs 318.
Around 50 lakh shares (20% of the offer) has been reserved for retail investors. Institutional investors can place bids on Thursday and retail investors on Friday.
RITES, which comes under the railways ministry, will see the government stake fall to 72% or 67% post-issue depending on the exercise of the green shoe option.
In 2017-18, the RITES issue was oversubscribed 67 times in 2017-18 when the centre divested 12.6%. The brokers to the RITES deal are SBICAP Securities, Elara Securities and IDBI Capital Markets & Securities.
The issue comprises 1.25 crore shares (5% stake) with an option to sell an additional 1.25 crore shares based on demand. The floor price has been fixed at Rs 298 per share — a discount of 6% to Wednesday’s close of Rs 318.
Around 50 lakh shares (20% of the offer) has been reserved for retail investors. Institutional investors can place bids on Thursday and retail investors on Friday.
RITES, which comes under the railways ministry, will see the government stake fall to 72% or 67% post-issue depending on the exercise of the green shoe option.
In 2017-18, the RITES issue was oversubscribed 67 times in 2017-18 when the centre divested 12.6%. The brokers to the RITES deal are SBICAP Securities, Elara Securities and IDBI Capital Markets & Securities.
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