New Delhi, Jan 17 (PTI) State-owned RITES has filed draft papers with markets regulator Sebi to raise an estimated Rs 600 crore through an initial share sale.
Incorporated by the railways ministry, the company provides transport consultancy and engineering services.
The initial public offer (IPO) will see sale of 2.4 crore equity shares, amounting to 12 per cent, by the promoter, according to the draft red herring prospectus (DRHP) filed with Sebi.
Explaining the reason behind the public issue, the company said it is aiming to achieve the benefits of listing the equity shares on the stock exchanges.
"Further, our company expects that listing of the equity Shares will enhance our visibility and brand image and provide liquidity to our shareholders. Listing will also provide a public market for the equity shares in India," the firm said.
Elara Capital (India) Pvt Ltd, IDBI Capital Markets & Securities Ltd, IDFC Bank Ltd and SBI Capital Markets Ltd will manage the companys IPO.
According to merchant banking sources, the public issue is expected to fetch around Rs 600 crore.
RITES had a post-tax-profit of Rs 362 crore in 2016-17 and a revenue from operations was at Rs 1,354 crore.
Finance Minister Arun Jaitley had announced in the Union Budget in February last year the governments plan to list rail PSUs.
RITES, RVNL, IRCON, Indian Railway Finance Corp (IRFC) and Indian Railway Catering and Tourism Corporation Ltd (IRCTC) are the public sector undertakings into the railways. PTI SP MKJ