By IANS
New Delhi : The state-owned rail engineering consultancy firm Rail India Technical and Economic Services Ltd (RITES) will sell 10 million shares as an initial public offering (IPO).
The Cabinet Committee on Economic Affairs (CCEA) at its meeting Thursday granted its approval for the RITES to go ahead with the IPO, an official statement said.
The RITES has proposed to issue an additional 10 million shares with a face value of Rs.10 each, the statement said.
After the IPO, paid-up equity of the RITES will rise from Rs.40 million to Rs.50 million while the government’s holding in the company will be reduced to 72 percent, it said.
The IPO will raise funds for the RITES’ diversified business operations, the statement added.