The public sector railways consultancy firm RITES is all set to hit the primary market with Rs. 460 crore IPO on June 20. The price band for the issue has been fixed at Rs.180-185. In the current financial year, RITES will be the first PSU firm to go public. RITES IPO can then be followed by another rail PSU firm RVNL or Rail Vikas Nigam Limited's IPO which is expected to have an issue size of Rs. 500 crore.
The IPO by RITES is a share sale through which the government will divest 12% stake in the firm or sell 2.52 crore equity shares that includes 12 lakh shares to employees. The IPO will close for subscription on June 22.
The government owns entire 100% stake in the company and at the upper end of Rs. 185 per share expects to mop up a sum of appx Rs. 460 crore. The paid up share capital of the company currently totals to Rs. 200 crore.
Also, are lined up two more rail PSUs IPO namely IRCON and IRFC Ltd. in the July-September quarter.