RITES decides to enter capital market

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New Delhi, Apr 2 (UNI) RITES Limited, a Mini Ratna multi-disciplinary public sector enterprise of the Railway Ministry, has decided to enter the capital market soon with an Initial Public Offering (IPO) of 140,00,000 equity shares of Rs. 10 each.

The allotment of equity shares is to be decided through a 100 per cent Book-Building Process.

''We have already filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an IPO of 140,00,000 equity shares of Rs.

10 each,'' a RITES official said.

The IPO comprises a fresh issue of upto 1,00,00,000 equity shares and an offer for sale of up to 40,00,000 equity shares through the Railway Ministry (the Selling Shareholder).

''The Issue comprises a Net Issue to the public of upto 126,00,000 equity shares and a reservation of upto 14,00,000 equity shares for subscription by eligible employees,'' the official said, adding that the equity shares would constitute 28 per cent of the fully diluted post-issue capital of the company.

The equity shares are proposed to be listed on the National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange Ltd (BSE).

Of the total Issue, up to 50 per cent of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs). 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 to Retail Individual Bidderson a proportionate basis.

The Book Running Lead Managers (BRLMs) to the Issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited and ICICI Securities Limited.

The proceeds of the IPO are proposed to be used, among other things, for financing leasing of rolling stock and investment in BOT and BOOT projects in the infrastructure sector.

RITES Ltd, established in 1974, provides a comprehensive array of services from concept to commissioning and in transfer of technology to client organisations.

It has expertise and long experience in engineering design development and consultancy services in various facets of transport technology and infrastructure and has an understanding of Indian and foreign market especially in railway, road, bridges, Urban development and building construction.

At present, RITES is involved in the rehabilitation, operation and maintenance of the railway network in Tanzania and Mozambique where it is engaged in the for 25 years. The company has 51 per cent and 26 per cent stakes in these projects respectively. UNI/SKS GL PM1337

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