RITES stock gathers pace post tepid listing, rises 23% over issue price
BusinessToday.In July 2, 2018
The stock of railways consultancy firm RITES Ltd listed on the bourses at 3% premium against the issue price of Rs 185 with the government eyeing about Rs 466 crore via sale of 12% stake or 2.52 crore equity shares. The stock listed at Rs 190, a gain of 2.70 per cent from the issue price on BSE. It later soared 21.29 per cent to Rs 224.40.
At NSE, shares of the company opened at Rs 190. The company's market valuation stood at Rs 4,299 crore.
In terms of equity volume, 47.19 lakh shares of the company were traded on BSE and over 4 crore shares changed hands at NSE during the morning trade.
The stock has gained 23% over its issue price intra day. The stock touched a new high of 224.40 on BSE.
IPO of RITES was open during June 20-22 and was in a price band of Rs 180-185.
RITES garnered strong investor demand, with the issue getting subscribed more than 67 times.
RITES is the first state-owned firm to hit the IPO market in the current financial year.
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 were available in a market lot of 80. Around 2.52 crore equity shares of Rs 10 (face value) were offered for sale.
Book running lead managers for the issue were Elara Capital (India) Ltd, IDBI Capital Markets & Securities Ltd, IDFC Bank Ltd and SBI Capital Markets Ltd.
Discount of Rs 6 per share was offered to retail investors and employees. 12 lakh shares in the issue were offered to employees.
The government has set a target of raising Rs 80,000 crore through PSU disinvestment in the current fiscal. This is lower than Rs 1.03 lakh crore raised in last fiscal.