Government Plans To Sell 15% Stake In RITES For Up To Rs 700 Crore

The government is planning to divest up to 15 percent stake in RITES Ltd. through an offer for sale. The RITES stake sale could fetch around Rs 700 crore to the exchequer.

Railways consultancy firm RITES was listed on the stock markets in July 2018 after it raised about Rs 466 crore through an initial public offering, which was subscribed 67 times. RITES shares listed at Rs 190 apiece against the issue price of Rs 185.

"The Government of India is considering to divest 15 percent paid-up equity share capital of RITES out of its shareholding of 87.40 percent in the domestic market through an OFS of shares by promoters," the Department of Investment and Public Asset Management said on Wednesday.

DIPAM also invited Expression of Interest from merchant bankers by June 6, to assist and advise the government in the sale process.

At the current market price, the RITES stake sale would fetch around Rs 700 crore to the government.

The government has set a disinvestment target of Rs 90,000 crore in 2019-20. It has so far raised Rs 2,350 crore from the IPO of Rail Vikas Nigam Ltd. and sale of "enemy property". Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.