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
- 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|
|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.
|Particulars / Rs Cr.||Sep-19||Jun-19||Mar-19||Dec-18||Sep-18|
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.