RITES IPO subscribed over 66 times

IPO to bring ₹ 466 crore revenue to the Government

The initial public offering (IPO) of PSU firm RITES, was subscribed 66.75 times. In the RITES IPO, the government is selling 12.6 percent stake or 2.52 crore equity shares, including 12 lakh shares to employees. The Government is expected to raise ₹ 466 crore from the RITES issue. The issue received bids for 168.20 crore shares worth ₹ 30,630 Crore against the issue size of 2.52 crore shares worth ₹ 466 Crore. The segment meant for qualified institutional buyers (QIBs) was subscribed 71 times, non-institutional investors 194 times, while the retail investors segment was subscribed over 13 times. The numbers quoted above are likely to go up as these are based on the information available at 6 pm. RITES IPO is one of the highest subscribed IPOs in recent times. Price band for the issue has been fixed at ₹ 180-185 per share, with a discount of ₹ 6 for retails investors and employees.

RITES is the first CPSE to launch an IPO in the current fiscal besides being the first Railway CPSE to be listed on the stock markets after Concor in 1994-95.

Government divestment via IPO draws massive oversubscription, triggering pro rata allotment and reserved employee shares. The Government effected a government divestment by offering a minority equity stake in a central public sector undertaking through an initial public offering, selling a defined percentage of equity including a reserved portion for employees, conducted within a prescribed price band with a retail discount; subscriptions across Qualified Institutional Buyer, non-institutional and retail segments produced significant oversubscription leading to scaling back and pro rata allotment under public offering allocation rules, with proceeds accruing to the Government.