RITES share price fell in early trade today amid the ongoing offer for sale by the government. Share price of RITES lost up to 5.67% to Rs 300 compared to the previous close of Rs 318.05 on BSE. The PSU stock opened 4.42% lower at Rs 304 today. Market capitalisation of the firm fell to Rs 7,532 crore. However, the mid cap stock has gained 66.17% during last one year and 3.8% since the beginning of this year.
Government on Wednesday announced sale of up to 2.5 crore shares representing 10% stake in the public sector engineering consultancy firm. Government owns 77.39% stake in the firm.
The two-day issue comprises sale of 1.25 crore shares or 5% stake on each day. Today, the offer is open for non-retail investors. On Thursday, retail investors along with non-retail investors who choose to carry forward their un-allotted bids can take part in the share sale.
Floor price for the sale has been fixed at Rs 298 per share, which is 6.28% lower than the closing price of Rs 318 on Wednesday. The offer which started at 9: 15 am on a separate window of the stock exchanges will close at 3:30 pm today.
The ongoing share sale is part of the government divestment programme for the current fiscal. In the Budget announced on February 1, government revised its divestment target downward from Rs 1.05 lakh crore to Rs 65,000 crore after it could collect nearly Rs 18,000 crore in this fiscal.
Written by Aseem Thapliyal