RITES debuts at Rs 190, 2.7% premium over issue price

NEW DELHI: State-owned railway consultancy firm RITES listed at Rs 190 on the NSE on Monday, a 2.7 per cent premium over the issue price of Rs 185.

On the BSE too, the stock was listed at the same price.

The company's Rs 466-crore IPO, which ran on June 20-22, was a blockbuster hit as the issue was subscribed 67 times. The price band was fixed at Rs 180-185 per share with face value of Rs 10.


RITES is a leading player in the transport consultancy and engineering sector in India and the only company with diversified services and wide geographical reach.

It is the only export arm of Indian Railways that provides rolling stock overseas other than Thailand, Malaysia and Indonesia, it said in its draft red herring prospectus (DRHP).

It also provides consultancy services across other infrastructure and energy market sectors, including urban transport, roads and highways, ports, inland waterways, airports, institutional buildings, ropeways, power procurement and renewable energy.

All brokerages covering the IPO had assigned ‘subscribe’ to the issue.

"At the upper end of the price band at Rs 185, the issue is priced at a PE of 10.5 times (post dilution) on FY17 and 11.4 times on nine months of FY18 (annualised) basis, which we believe is attractive," said Centrum Broking.

In view of the reasonable valuations, buoyant outlook on railway capex and robust order book, Kotak Securities advises investors to subscribe to the issue.