Shares of RITES fell close to 6 percent on Thursday to Rs 300 on government's proposed plan to sell part of its stake in the company through an offer-for-sale.
The company, in a stock exchange filing on Wednesday, said the Ministry of Railways has proposed to sell up to 1.25 crore equity shares, representing 5 percent of the total issued and paid-up equity share capital of RITES. The OFS will be open to non-retail investors on 27 February and to retail investors on 28 February.
Further, in the case of oversubscription, the government will excise the option to sell up to 1.25 crore additional shares.
The floor price for the OFS is set at Rs 298 per share, a 6.6 percent discount from Wednesday's closing price of Rs 318.20.
Following the success of the OFS, the Ministry of Railways' stake in the company will come down to 72 percent or 67 percent.
RITES Limited is a public sector company that is engaged in the business of engineering consultancy for transport services in the country and abroad. Apart from railway transport management, the company also provides planning and consultancy services for other infrastructure, including airports, ports, highways and urban planning.