RITES files papers with Sebi to raise ₹600 cr via IPO

NEW DELHI: State-owned RITES has filed draft papers with markets regulator Sebi to raise an estimated ₹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%, 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 company’s IPO.

According to merchant banking sources, the public issue is expected to fetch around ₹600 crore. RITES had a post-taxprofit of ₹362 crore in 2016-17 and a revenue from operations was at ₹1,354 crore.

Finance minister Arun Jaitley had announced in the Union Budget in February last year the Central government’s plan to list rail public sector units (PSUs).