RITES IPO of one crore shares

New Delhi, Jan 10 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval of RITES Ltd for raising fresh equity through an Initial Public Offering (IPO) of Rs one crore shares with a face value of Rs 10 each.

Briefing newspersons on the outcome of the CCEA decisions, Finance Minister P Chidambaram said after the IPO the paid up equity of RITES Ltd will rise from Rs 4 crore to Rs 5 crore and the government's holding in the company will be reduced to 72 per cent.

RITES Ltd has entered newly emerging business of concession of existing railway lines, BOT of rail and infrastructure project and leasing of rail equipment.

The IPO will facilitate raising funds for investment for these projects, Mr Chidambaram said.

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