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RITES' 10% stake sale fetches govt Rs 729 crore

RITES 10% stake sale fetches govt Rs 729 crore
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New Delhi: The 10% offer for sale of RITES was fully subscribed with disinvestment proceeds of Rs 729.44 crore.

"The government undertook Offer for Sale (OFS) for 10% of paid-up equity in RITES Limited on November 22-25. The Base offer was fully subscribed (100.01%) with disinvestment proceeds of Rs 729.44 Crore," said Department of Investment and Public Asset Management (DIPAM).

RITES shares are at Rs 281.40 on BSE.

Railways consultancy firm, RITES was listed on the bourse in July 2018, after it raised about Rs 466 crore through an Initial Public Offering (IPO).

The government has so far garnered Rs 17,364.26 crore from disinvestment, but around 82% (Rs 14,369.03 crore) of it has been accrued from the ETF funds and not from stake sales, showing that the reliance on funds has worked well for selloff as a strategy.

The Bharat 22 ETF under its second FFO mopped up Rs 4,368.80 crore and CPSE ETF under FPO sixth tranche collected Rs 10,000.32 crore in this financial year, as per the DIPAM data.

The money came from initial public offering of Rail Vikas Nigam (Rs 475.89 crore), IRCTC's IPO (Rs 637.97 crore) and sale of enemy property (Rs 1,882.21 crore), as per DIPAM figures on the proceeds.

The Bharat Petroleum Corporation Ltd (BPCL), the Container Corporation (Concor), the Shipping Corporation (SCI) privatisation are due for FY20. So is Air India. Bharat 22 ETF's fourth tranche was subscribed 12 times.

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