RITES Limited IPO – Review, Allotment Status, Subscription, Price, Date & more

Rites Limited is a Public Sector Enterprise and is the only company with diverse services and geographical reach acting as a leading player in the transport consultancy as well as in  engineering sector in India. The Company has issued 25,200,000 Equity shares of Rs.10 each. Let’s have a detailed review of the company and analytics of the Rites Limited IPO release date, IPO offer price, subscription, Rites Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Rites Limited IPO Review & Ratings

Rites Limited IPO Ratings & Review
CriteriaRatings
Industry Sentiments 8.3/10
Industry Ranking 8.3/10
Company Background8.1/10
Company Reputation8.4/10
Competitive Edge8.4/10
Financial Statements8.5/10
Popularity Index8.2/10
Promoters Reputation8.3/10
Retail Appetite 8.2/10
Top Brokers Review8.3/10
Overall Ratings 8.3/10
Star Ratings★★★★

Summary of Rites Limited IPO

RITES Limited IPORites Limited has significant presence as a transport infrastructure consultancy organization in the railway sector. However, Rites Limited also provide consultancy services across other infrastructure and energy market sectors including urban transport, roads and highways, ports, inland waterways, airports, institutional buildings, roadways, power procurement and renewable energy. Rites Limited has served various public sector undertakings, government agencies and instrumentalities and large private sector corporations, both in India and abroad, over the years. At the upper end of the price band of Rs 185 a scrip, the IPO would fetch around Rs 460.20 crore to the exchequer.

From FY 2014-15 to FY 2016-2017, as per the Restated Financial Statements:

From fiscal 2016 to 2017, company’s revenue from operations and profit after tax has increased at a growth rate of 15.62% and 7.73%, respectively.

Revenue from operations has increased at a CAGR of 15.62% from Rs10,126.88 million in the Financial Year 2015 to Rs13,538.04 million in the Financial Year 2017.

  • During the financial year 2016-17 the Other Income of company increased to Rs. 2070.99 million as against Rs. 1488.32 million for the financial year 2015-16.
  •  Company’s Profit after tax has increased at a CAGR of 7.73% from Rs 3,122.88 million in Financial Year 2015 to Rs3,625.17 million in the Financial Year 2017.

The Promoter of the company is THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOI. The lead manager to the issue is Elara Capital (India) Private Limited, IDBI Capital Markets & Securities Limited, IDFC Bank Limited and SBI Capital Markets Limited and the Registrar to this issue is Link Intime India Private Limited.


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    Rites Limited IPO Date

    The opening and the closing date of IPO is June 20, 2018 and June 22 ,2018 respectively.


    Rites Limited IPO Subscription

     Subscription
    Day 1 (20th June)0.59
    Day 2 (21st June)2.11
    Day 3 (22nd June)66.77
    Day 4 
    Day 5 

    The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


    Rites Limited IPO Allotment Status

    The  Basis of Allotment is 14:1.

    RITES Limited IPO Allotment Date by  28-June-18
    RITES Limited IPO Listing Date by 03-July-18

    Rites Limited IPO Price Band

    The IPO issue price is Rs 180 – Rs 185 per Equity Share, so the Premium Price is Rs 170 – Rs 175 per Equity Share.


    Rites Limited IPO Equity Share Offering

    24,000,000 Equity Shares of Rs.10/- each, aggregating up to Rs 466.20 Crores. The Minimum Order Quantity or Market Lot is 80 Shares.


    Rites Limited – Company Overview

    Incorporated in 1974, RITES Ltd. is a Government of India Enterprise, under the aegis of Indian Railways. RITES Ltd. is an organization in the fields of transport, infrastructure, and related technologies. It provides a wide range of services under single roof. In overseas projects, RITES actively pursues and develops cooperative links with local consultants/firms, as means of maximum utilization of local resources and as an effective instrument of sharing its expertise.

    In India, the clients include various central and state government ministries, departments, instrumentalities as well as local government bodies and public sector undertakings.

    Since its inception, the company has evolved from providing transport infrastructure consultancy and quality assurance services and have developed expertise in:

    1. Design, engineering and consultancy services in transport infrastructure sector with a focus on railways, urban
    transport, roads and highways, ports, inland waterways, airports, and roadways;
    2. Leasing, export, maintenance, and rehabilitation of locomotives and rolling stock;
    3. 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; and
    4. Wagon manufacturing, renewable energy generation and power procurement for Indian Railways through collaborations by way of joint venture arrangements, subsidiaries or consortium arrangements.

    Competitive Strengths of Rites Limited:

    • Comprehensive range of consultancy services and a diversified sector portfolio in the transport infrastructure space.
    • Large order book with strong and diversified clientele base across sectors.
    • Technical expertise and business divisions with specialized domain knowledge.
    • Experienced management personnel and technically qualified team.
    • Strong and consistent financial performance supported by robust internal control and risk management system.
    • Preferred consultancy organization of the Government of India including the Indian Railways.

    Business strategies of Rites Limited:

    • Leverage experience and continue to build on  core competencies in transport infrastructure sector.
    • Strengthen  EPC/Turnkey business.
    • Expand International Operations.

    Rites Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary:

    Amount (in Rs. Millions)
    31-Mar-1731-Mar-1631-Mar-1531-Mar-1431-Mar-13
    Total Assets48,031.6944,092.0636,056.3036,363.8232,867.96
    Total Revenue15,637.2112,267.2711,591.0712,234.7010,830.52
    Total Expenses10,439.547,731.786,917.768,357.807,534.85
    Profit After Tax3,624.162,827.313,122.882,605.362,330.57

     

    • Earnings per Equity Share (in Rs.)
    31-Mar-1731-Mar-1631-Mar-1531-Mar-1431-Mar-13
    Basic and Diluted17.78014.11215.54213.15411.399

    From the above statements, one could find that the Rites Limited may perform well.


    Rites Limited IPO – Promoters

    The Promoter of this company is the President of India acting through MOR.

    List of Related Parties (Key Managerial Personnel)

    •  Vidya Rajiv Yeravdekar
    •  Mr. Satish Sareen
    • Mr. Anil Kumar Goel
    • Dr. Pramod Kumar Anand
    • Mr. Bhupendra Kumar Agrawal
    • Mr. A. P. Dwivedi

    Interest in promotion of the Company

    Directors have no interest in the promotion or formation of Company. However, Mr. A. P. Dwivedi, one of Government Nominee Directors, holds 1,000 Equity Shares, constituting 0.0005% of the Equity Share capital, in his capacity as nominee of Promoter, the President of India.

    Property Interest

    Directors have no interest in the promotion or formation of Company. However, Mr. A. P. Dwivedi, one of Government Nominee Directors, holds 1,000 Equity Shares, constituting 0.0005% of the Equity Share capital, in his capacity as nominee of Promoter, the President of India.

    Interest in Intellectual Rights of the Company

    Directors has not shown any interest in acquiring the intellectual rights of the company.


    Rites Limited IPO Offer Details or Issue Details

     Particulars No. Of Equity Shares
     Equity Shares Offered 25,200,000 Equity Shares of at Issue Price of Rs 180 – Rs 185 per equity share aggregating up to Rs 466.20 Crores.
     Of which:
    A) QIB Portion12,000,000 Equity Shares
    Mutual Fund Portion600,000 Equity Shares
    Balance for all QIBs including Mutual Funds11,400,000 Equity Shares
    Non-Institutional PortionNot less than 3,600,000 Equity Shares
    Retail PortionNot less than 8,400,000 Equity Shares
    Pre and post Offer Equity Shares
    Equity Shares outstanding prior to the Offer200,000,000 Equity Shares
    Equity Shares outstanding after the Offer200,000,000 Equity Shares

    Rites Limited IPO Issue Object

    These are the IPO Issue Objects of the company:

    1. To carry out the disinvestment of 25,200,000 Equity Shares held by the Selling Shareholder in the Company, equivalent to 12% of the issued, subscribed and paid up Equity Share capital of the Company as part of the Net Offer, and such Equity Shares that may be reserved for Employee Reservation Portion, if any, subject to necessary approvals.
    2. To achieve the benefits of listing the Equity Shares on the Stock Exchanges.


    Rites Limited IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    • Comprehensive range of consultancy services and a diversified sector portfolio in the transport infrastructure space;
    • Large order book with strong and diversified clientele base across sectors;
    • Technical expertise and business divisions with specialized domain knowledge;
    • Experienced management personnel and technically qualified team;
    • Strong and consistent financial performance supported by robust internal control and risk management system; and
    • Preferred consultancy organization agency of the Government of India including the Indian Railways.

    The relevant quantitative factors are:

    Basic & Diluted EPSRONW (%)NAV (Rs.)
    31-Mar-1515.5418.62
    31-Mar-1614.1115.19
    31-Mar-1717.7817.44102.12

     


    Rites Limited IPO Lead Managers

    Lead Managers
    Elara Capital (India) Private Limited
    IDBI Capital Markets & Securities Limited
    IDFC Bank Limited
    SBI Capital Markets Limited

    Rites Limited IPO Registrar to offer

    Registrar to the Offer
    Link Intime India Private Limited
    Address: C-101,1st Floor, 247 Park, Lal
    Bahadur Shashtri Marg, Vikhroli (West),
    Mumbai – 400 083, India, Telephone: +91 22 4918 6200
    Facsimile: +91 22 4918 6195
    E-mail: rites.ipo@linkintime.co.in, Website: www.linkintime.co.in
    Investor Grievance ID: rites.ipo@linkintime.co.in
    Contact Person: Ms. Shanti Gopalkrishnan
    SEBI Registration No.: INR000004058

    Other Details:

    • Statutory Auditor – M/s Agiwal & Associates.
    • Legal Counsel – Riker Danzig Scherer Hyland & Perretti LLP
    • Bankers to the Company –  Axis Bank Limited, State Bank Of India

    Rites Limited IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking8.5/108.4/108.5/108.1/108.1/10
    Sharekhan8.2/108.1/108.6/108.1/108.2/10
    Kotak Securities8.3/108.5/108.4/108.1/108.3/10
    ICICI Direct8.3/108.3/108.7/108.1/108.1/10
    IIFL8.5/108.2/108.8/108.0/108.1/10
    Edelweiss8.5/108.4/108.4/108.3/108.2/10
    Zerodha8.4/108.1/108.5/108.1/108.0/10
    5Paisa8.1/108.1/108.4/108.1/108.1/10
    Karvy8.4/108.3/108.2/108.1/108.1/10
    Motilal Oswal8.1/108.1/108.6/108.3/108.2/10

    The ratings would be updated once the financials and the other details of the IPO are released.


    Rites Limited IPO Grey Market Premium

    The Rites Limited IPO Grey Market Premium as on 23rd June is Rs 45 – Rs 50; Kostak Rate is Rs 400 and Subject to sauda at Rs 3000.


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      Rites Limited IPO News

      News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

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