Thursday, July 25News That Matters

Rites Limited IPO – Allotment Status, Allotment, Listing Date, Analysis, Details, Review,Issue Price

Rites IPO Allotment Status –   You can check Rites IPO Allotment Status  here.  To check the allotment, you will need wither your PAN number or Application No., or DP/Client ID :

The company after consultation with book running lead managers has fixed final issue price at Rs 185 per share.

RITES is going to list its equity shares on the BSE and NSE on Monday, July 2, 2018


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Update (Day 3) :   Issue Overall oversubscribed 67 times –   Retail quota over-subscribed 55.52 times. Qualified institutional buyers (QIBs) quota was subscribed at 71 times , non-institutional investors 194 times.


Update (Day 2) :   Retail quota over-subscribed 5.59 times. Qualified institutional buyers (QIBs) quota was subscribed at 32%, non-institutional investors 49%  –  Issue total over-subscribed 2.11 times.


Update (Day 1) :   Retail quota over-subscribed 1.64 times. Qualified institutional buyers (QIBs) quota was subscribed at 2%, non-institutional investors 19% 

RITES Limited, a wholly owned government company is planning to divest 12.6%  through its IPO opened on 20th June 2018.


Issue Details of RITES LIMITED IPO:   

  • IPO Open:  20th June – 22nd June 2018
  • Issue Price band: Rs 180 – Rs 185  (Discount of Rs.6/- per Equity Share for Retail Individual bidders and Eligible Employees category)
  • Issue Size:  Rs 466 crore approx
  • Market lot:  80 shares
  • Minimum Investment: 80 shares 
  • Max Investment for Retail Investor – 1040  shares at cutoff  (Rs 192400)
  • Book Running Lead Managers:   Elara, IDBI, IDFC, SBI
  • Registrar: Link Intime
  • Listing: BSE/NSE
  • Download – RITES Red Herring Prospectus


RITES  IPO Grey market Premium :

  • 20th June 2018 –  Grey market premium as on today is Rs.35-40, Kostak Rs.400 & Subject to Sauda is Rs.2500

IPO Issue Allocation:

  • Qualified institutional buyers (QIBs) – 50% of the offer.
  • Non-institutional bidders –  15% of the offer.
  • Retail individual bidders  – 35% of the offer.


RITES is a wholly-owned government company, a Miniratna (Category – I) Schedule ‘A’ public sector enterprise. It is a leading player in transport consultancy and engineering sector in India, and the only company having diversified services and geographical reach in this field under one roof. 

RITES has experience spanning 43 years and undertaken projects in over 55 countries, including Asia, Africa, Latin America, South America and West Asia. 

Top Shareholdings: The Promoter of the company is the President of India acting through the Ministry of Railways. Govt. of India currently holds, directly and indirectly, 100% of the pre-Offer paid-up Equity Share capital of the Company.


Objective of the issue: The company will not receive any proceeds from the Offer. The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and to carry out the sale of Offered Shares by the Promoter Selling Shareholders.


Financials and Valuation

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, 

RITES has good financials with Ebitda of nearly 28% and RoE (return on equity) of over 16% . It is virtually debt free, dividend paying and has positive cash flow from operations. 

RITES’ order book as of March 31, 2108 stood at Rs 4,818.6 crore, which is 3.5 times of FY17 revenue, which gives strong revenue visibility going forward. 

Valuation as compared to its peers:   The company has no listed peer

Brokerage Recommendations: 

 Brokerage View
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Arihant Capital Subscribe
Kotak Securities Subscribe
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Should you invest: 

The company has strong order book, virtually debt free and free cashflow. Over FY13-17, RITES registered revenue and PAT CAGR of 9% and 11%, respectively. The price band is valued attractively.

Investors can consider investing in this IPO.

Disclaimer: This is not a financial advice, please consult your financial advisor before investing.


RITES IPO Allotment Date and Link and Status and Listing Date

RITES Limited IPO Allotment Date is 28th June 2018. The link will be updated here.

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