RITES' IPO that was fully-subscribed on Thursday continues to see strong demand even today. Livemint reported that as of 4 pm, the RITES IPO was subscribed over 66 times, citing NSE data. The price band of IPO has been fixed at Rs 180-185 per share, with a lot size of 80 shares and in multiples thereafter.
 
According to the report, the retail segment which attracted strong demand was subscribed 5.59 times on Thursday itself. In this current fiscal, RITES is the first state owned firm to hit the IPO market. 
 
Citing attractive valuation, many brokerage firm had come up with 'subscribe' rating to the RITES issue. At the higher end of the price band of Rs 185, the issue is priced at P/E of 10.5x (post dilution) on FY17 and 11.4x on 9MFY18 (annualized) basis, which we believe is attractive,” Centrum Wealth Research said in a note, cited Livemint.
 
The report stated that another brokerage Motilal Oswal has also suggested a “subscribe” on RITES issue. “As of FY18, RITES order book stood at Rs 4,820 crore, 3.9 times order book to sales; thus providing strong revenue visibility. It is well diversified with consultancy services contributing 53%, followed by turnkey projects (29%), exports (15%) and leasing services (3%),” Motilal Oswal said.

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The government selling 12% stake or 2.52 crore equity shares in the RITES IPO that includes 12 lakh shares to the employees. 
 
Elara Capital (India), IDBI Capital Markets & Securities, IDFC Bank and SBI Capital Markets are managing the issue.