Home BUSINESS RITES Shares Make Strong Debut On Exchanges, Shares Rise Over 11%

RITES Shares Make Strong Debut On Exchanges, Shares Rise Over 11%

3 min read
0
0
5

New Delhi: State-owned RITES Ltd, which saw a blockbuster response to its IPO that closed on June 22, made a strong debut on stock exchanges on Monday with its shares rising over 11 per cent to as much as Rs 205.70 on the National Stock Exchange. RITES shares were issued at Rs 185 per share. As of 10.21 am RITES shares were trading 2.63 per cent higher at Rs 195 apiece on the NSE.

The Rs 466 crore IPO of RITES that ended last month was subscribed 66.74 times led by strong demand from high networth investors (HNI), as the segment reserved for then was subscribed nearly 195 times. Meanwhile, the QIB and retail investor’s segment was subscribed 71.71 times and 14.24 times respectively.

RITES IPO was purely an offer for sale by the government of India, through which it offloaded 13 per cent stake to raise Rs 466 crore.

RITES was incorporated in 1974 by the Ministry of Finance as a transport infrastructure consultancy and quality assurance services provider. During these last 43 years, the company has developed expertise in design, engineering and consultancy services in transport infrastructure sector with a focus on railways, urban transport, roads & highways, ports, inland waterways, airports and ropeways. The company also undertakes turnkey projects on engineering, procurement and construction basis for railway line, track doubling. The company derives 49 per cent of its revenue from consultancy services, 28 per cent from export sales and remaining from other business.

RITES had reported a net profit of Rs 362 crore on revenues of Rs 1,353 crore in FY17. Its revenue has witnessed a CAGR of 9.61 per cent during FY13-FY17 while its net profit witnessed a CAGR of 11.61 per cent during the same period. At the upper end of the price band, RITES shares are priced at 12x of its annualizes FY18 EPS of Rs 17, which was reasonable, said, analysts.

Load More Related Articles
Load More By The Lifeline Today
Load More In BUSINESS

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Intel Releases New ‘Xeon’ Chip For Entry-Level Workstations

San Francisco: Intel on Friday released new “Xeon E-2100” 6-core processor for…