RITES Limited, a Mini Ratna Grade I multi-disciplinary public sector enterprise under the Ministry of Railways, operating in the fields of transport, infrastructure and related technologies, has filed a Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”) to enter the capital market soon with an Initial Public Offering (“IPO”) of 140,00,000 equity shares of Rs. 10 each for cash at a price (“Equity Shares”) to be decided through a 100% Book-Building Process (the “Issue”).
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, Government of India (the “Selling Shareholder”). 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. The Issue will constitute 28% of the fully diluted post issue capital of the Company. The Equity Shares are proposed to be listed on National Stock Exchange of India Ltd. (“NSE”) and Bombay Stock Exchange Ltd. (“BSE”).
Of the total Issue, up to 50% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”). Also, 5% of the QIB Portion will be available for allocation on a proportionate basis to Mutual Funds only. Further, at least 15% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and at least 35% of the Net Issue will be available for allocation on a proportionate basis to Retail Individual Bidders.
The Book Running Lead Managers (“BRLMs”) to the Issue are Kotak Mahindra Capital Company Limited, Enam Securities Private Limited and ICICI Securities Limited.
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