RITES Limited is a Government of India Enterprise, under the aegis of Indian Railways. It provides a comprehensive array of services under a single roof and believes n transfer of technology to client organizations. Before stepping into the main review part, let’s have a look at the issue details of the Govt Enterprise. RITES Limited IPO Review is very much significant for investors.
About RITES Limited IPO :
- IPO Opens on – June 20, 2018.
- IPO Closes on – June 22, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs.180 – Rs.185 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – 80 shares.
- Minimum Order Quantity – 80 shares.
- Issue Size – 25,200,000 Equity Shares of Rs 10 aggregating up to Rs 466.20 Cr.
- Listing Exchange – BSE, NSE.
- Draft Prospectus – Download.
Objectives of the issue :
- To raise capital of the enterprise.
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
About The Company –
- RITES Limited is incorporated in 1974.
- This company is also providing transport related infrastructure consultancy and also quality assurance services. They also have developed expertise in:
1. Leasing, maintenance, export, and rehabilitation of locomotives and rolling stock.
2. Undertaking turnkey projects on engineering, procurement and construction basis for the railway line, track doubling, 3rd line, railway electrification, up gradation works for railway transport systems and workshops, railway stations,
and construction of institutional/ residential/ commercial buildings, both with or without equity participation.
- These local government bodies and public sector are Indian Railways, NTPC, Dedicated Freight Corridor Corporation of India Limited, High Speed Rail Corporation of India Limited, Public Works Department, DMRC, Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, Hindustan Petroleum Corporation Limited, Bharat Coking Coal Limited, Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Company Limited, Indian Port Rail Corporation Limited, Airports Authority of India, among others.
- RITES Limited is also engages with various large private sector corporations including L&T Metro Rail (Hyderabad) Limited, Kanti Bijlee Utpadan Nigam Limited (KBUNL), Cimmco Limited, Titagrah Wagons Limited, Snowmen Engineers Limited, Unity Infraprojects Limited, Rajdeep Buildcon Private Limited, Mahalsa Constructions Private Limited, Marymatha Constructions Limited, AFCON Infrastructure Limited, INCAP, ARK Services, MNEC Consultants Private Limited, Indian Geotechnical Services Limited, Geokno India Private Limited and NATRIP Implementation Society among others.
- The Promoter of this company is the President of India acting through the MoR.
Board of Directors :
Company Financials :
RITES Limited IPO Review:
From the Enterprise’s financial statement the progress in the increasing profit level is clearly viewed. In the last five years statement, FY 2016-17 net profit income is the highest one. To analyze a company’s IPO, the financial statement is not just enough. From draft red herring prospectus we get other important information which is quite helpful for analyzing the company. As per the last financial year, EPS or earnings per share is 17.78. P/E ratio is not available in DHRP.
Let’s move on to the RoNW or return on net worth ratio which stands at 17.44. ATheir NAV/share stands at 101.95. Basically, RITES is a good company and it has established a consistent track record of strong financial growth and performance. I hope you know about the NSE bid details by which you can sure about the strength of your specific company’s IPO on the last day of application. Along with this, I am providing you with another link that can guide you in understanding the steps to apply IPO. However, as I have mentioned that RITES has established a good financial track record, investors can take a chance to invest in this enterprise. It can be profitable in medium to long term. RITES has come with its issue price details, therefore, it carries a NEUTRAL to POSITIVE review for investors.
Categories: IPO Review