RITES OFS entails to sell up to 2,50,00,000 Equity Shares, in aggregate representing 10% of the total issued and paid-up Equity Share capital of the Company (“Base Offer Size”) on November 22, 2019 (“T Day”) (for non-retail investors only) and on November 25, 2019 (“T+1 Day”) (for retail investors and for non-retail investors who choose to carry forward their un-allotted bids).
There is option to additionally sell up to 1,25,00,000 Equity Shares (representing 5% of the total issued and paid-up Equity Share capital of the Company) as part of the “Oversubscription Option” and in the event the Oversubscription Option is exercised in RITES OFS
Updates
- RITES OFS Retail gets .52x response
- RITES OFS Receives a Mixed Response on Day 1 from Non retail Investors. Base offer subscribed 1.11 x , but Total offer response at .73x. for Non retail. Share Price at 293.9 ends close to Floor price of Rs. 293.5
About RITES OFS
| Issue Period | 22-11: 25-11-2019 |
| Face Value | 10 |
| Floor Price | 293.5 |
| MP a Day before | 306.65 |
| % Discount of Floor Price | 4.48% |
| Base Offer (shares) | 25000000 |
| Base offer Non Retail | 20000000 |
| Base offer Retail | 5000000 |
| Base Offer in Rs. Crore | 734 |
| Tot offer (shares) w Green Shoe | 3,75,00,000 |
| Total Offer (crore) | 1,101 |
| Total Non retail Shares | 3,00,00,000 |
| Total retail shares | 75,00,000 |
| Total retail in Rs. Cr. | 220 |
| Discount to Retal | 5% |
About RITES Limited
- RITES Ltd., a Government of India Enterprise was established in 1974, under the aegis of Indian Railways. RITES Limited is a Miniratna (Category-I) Schedule A’ Public Sector Enterprise
- RITES is a multi-disciplinary consultancy organization in the fields of transport, infrastructure and related technologies.
- RITES has undertaken various projects in over 55 countries across Asia, Africa, South America, Middle East etc.
RITES Financials:
| Particulars / Rs Cr. | Sep-19 | Jun-19 | Mar-19 | Dec-18 | Sep-18 |
| Net Sales | 746.24 | 537.65 | 737.26 | 534.92 | 442.95 |
| Other Income | 143 | 32.2 | 59.18 | 47.65 | 35.27 |
| Total Income | 889.24 | 569.85 | 796.44 | 582.57 | 478.22 |
| Total Expenditure | 550.35 | 403.28 | 555.49 | 378.58 | 294.07 |
| PBIDT | 338.89 | 166.57 | 240.95 | 203.99 | 184.15 |
| Interest | 1.7 | 1.48 | 2.73 | 1.71 | 1.78 |
| PBDT | 337.19 | 165.09 | 238.22 | 202.28 | 182.37 |
| Depreciation | 11.23 | 11.09 | 10 | 9.85 | 9.48 |
| Tax | 49.43 | 52 | 103.46 | 58.96 | 58.06 |
| Deferred Tax | 39.32 | -0.08 | -25.62 | -2.34 | 2.96 |
| Net Profit | 232.58 | 97.94 | 150.38 | 119.77 | 107.65 |
| EPS | 9.3 | 4.9 | 7.26 | 5.99 | 5.38 |
| Dividend (%) | 0 | 0 | 0 | 0 | 0 |
| Equity | 250 | 200 | 200 | 200 | 200 |
| PBIDTM(%) | 45.41 | 30.98 | 32.68 | 38.13 | 41.57 |
| PATM(%) | 31.79 | 18.99 | 20.4 | 25.39 | 25.26 |
RITES OFS : Salient points and Assessment
- Rites reported very Positive Financial performance in Sep-19.
- The open offer has been necessitated as part of GOI Disinvestment program.
- RITES IPO was at Rs. 185 in June 2018. Subsequently RITES has given Bonus in year 2019 in the ratio of 1:4.The share has been quoting ex-bonus from August 8, 2019.
- Thus RITES share was almost doubled post listing in less than 1.5 years.
- RITES is quoting near its life time high price making it bit risky and more so in view of sharp run up in last few weeks.
- RITES Is not in F&O which could lead to price volatility post the OFS.
- Retail has advantage of 5% discount in the OFS and can decide after seeing today’s response to RITES OFS
Standard disclaimer: I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.