RITES Closes 15% Above IPO Price On Stock Market Debut
RITES Ltd. closed at a premium of 14.9 percent at Rs 212.70 apiece over its IPO price on stock market debut. The stock traded between a low of Rs 190 and a high of Rs 224.5.
The IPO, which was the first by a government-owned company in the current financial year, was subscribed over 67 times last week. The non institutional portion was subscribed over 194 times, the retail portion for the IPO was subscribed nearly 16 times, according to cumulative data available on NSE.
RITES is a transport and engineering consultant—incorporated by the Ministry of Railways—that provides services overseas. It also offers services for leasing, export, maintenance and rehabilitation of locomotives and rolling stock. The company takes up projects on engineering, procurement and construction basis for the railways.
Revenues for the company have been growing at an annualised rate of 9 percent, while the net profit rose at 11 percent CAGR over financial years 2013 to 2017. For the first nine-months ended December, revenue and net profit stood at Rs 936 crore and Rs 243 crore, respectively.