RITES falls 6% as OFS opens for subscription

Shares of RITES crashed nearly 6 per cent in Thursday’s trade after company's offer for sale opened for subscription today. The company has set the floor price for the offer at about 6 per cent discount to the prevailing prices.

The state-owned company proposes to sell up to 1.25 crore equity shares, which is 5 per cent of the total issued and paid-up equity share capital of the company. The company has kept the option open to additionally sell up to 1.25 crore equity shares if the issue is oversubscribed.

RITES has reserved 50 lakh shares for retail investors– base offer size of 25,00,000 shares and oversubscription option to sell upto 25,00,000 shares. Retail bids below the cut-off price shall not be eligible for allocation.

The issue will open on February 27, 2020 for non-retail investors and on February 28, 2020 for retail investors and for non-retail investors who choose to carry forward their un-allotted bids.

Retail Investors will be allocated offers shares at a discount of Rs 8 to the cut off price in accordance with the SEBI OFS Circulars.

RITES Shares were trading at Rs 300, down 5.68 per cent on BSE.