RITES's stake sale via OFS opens for non retail investors

Railways firm RITES Offers for Sale (OFS) for non-retail investors opened on Thursday and the share has declined 5.52 per cent to Rs 300.60 after the government proposed sale of equity shares of the company.

RITES, in an exchange filing after market hours on Wednesday, said that the Government of India has proposed to sell its stake in the company.

The government has proposed to sell 1.25 crore equity shares, in aggregate representing 5 per cent stake in the company on February 27, 2020 (for non-retail investors only) and on February 28, 2020 (for retail investors and for non-retail investors), with an option to additionally sell up to 1.25 crore equity shares, representing 5 per cent stake, through an offer-for-sale (OFS).

The floor price for the OFS is Rs 298 per share.

RITES is a public sector enterprise (PSE) and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The government's stake in RITES stood at 77.39 per cent as on September 30, 2019.IANS