Govt clears 28% disinvestment in RITES
Giving a push to disinvestment despite opposition from the Left, the government on Thursday decided to offload a 28 per cent stake in rail infrastructure company RITES Ltd.
By PTI |
NEW DELHI: Giving a push to disinvestment despite opposition from the Left, the government on Thursday decided to offload a 28 per cent stake in rail infrastructure company RITES Ltd through an initial public issue.
The decision to disinvest equity in RITES, which is presently 100 per cent owned by the government, was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh.
RITES, a company under the Indian Railways, is likely to come out with an initial public offering of 10 million shares of face value of Rs 10 each in the next financial year.
"RITES is entering into emerging businesses of infrastructure projects and needs capital. After the public issue, government will still be left with 72 per cent equity in the company," Finance Minister P Chidambaram told reporters after the CCEA meeting.
Ruling out the RITES public issue in the current fiscal, Chidambaram said the procedure including appointment of advisers would normally take three to four months.
The government had earlier decided to increase the paid up capital of the company from Rs 4 crore to Rs 40 crore by issuing bonus shares of Rs 36 crore to the government.
The decision to disinvest equity in RITES, which is presently 100 per cent owned by the government, was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh.
RITES, a company under the Indian Railways, is likely to come out with an initial public offering of 10 million shares of face value of Rs 10 each in the next financial year.
"RITES is entering into emerging businesses of infrastructure projects and needs capital. After the public issue, government will still be left with 72 per cent equity in the company," Finance Minister P Chidambaram told reporters after the CCEA meeting.
Ruling out the RITES public issue in the current fiscal, Chidambaram said the procedure including appointment of advisers would normally take three to four months.
The government had earlier decided to increase the paid up capital of the company from Rs 4 crore to Rs 40 crore by issuing bonus shares of Rs 36 crore to the government.
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