RITES to enter market with IPO of 140,00,000 equity shares

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Mumbai, Apr 1 (UNI) RITES, a Mini Ratna Grade I multi-disciplinary public sector enterprise under the Ministry of Railways, has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) to enter the capital market with an Initial Public Offering (IPO) of 140,00,000 equity shares of Rs 10 each at a price to be decided through a 100 per cent book-building process.

RITES operates in the fields of transport, infrastructure and related technologies.

The issue comprises a fresh issue of up to 1,00,00,000 equity shares and an offer for sale of up to 40,00,000 equity shares by the President of India acting through the Ministry of Railways. The issue comprises a net issue to the public of up to 126,00,000 equity shares and a reservation of up to 14,00,000 equity shares for subscription by eligible employees, a release said.

The issue will constitute 28 per cent of the fully diluted post issue capital of the Company. The equity shares are proposed to be listed on National Stock Exchange of India and Bombay Stock Exchange.

Of the total issue, up to 50 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIB). Also, five per cent of the QIB portion will be available for allocation on a proportionate basis to Mutual Funds only. Further, at least 15 per cent of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and at least 35 per cent of the net issue will be available for allocation on a proportionate basis to retail individual bidders, the release added.

The book running lead managers to the issue are Kotak Mahindra Capital, Enam Securities and ICICI Securities.

UNI NM VK AG1808

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