IPO fever continues as govt initiates listing process of RVNL, RITES

The Centre has initiated the process of listing of two more public sector units of the Indian Railways, including Rail Vikas Nigam (RVNL) and RITES. These companies are among five railway PSUs which have been cleared for listing by the Union Cabinet in its meeting during third week of April.

The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers to manage the initial public offers (IPO) of the two PSUs. Both PSUs are fully owned by government and initially there will be 10 per cent divestment in these companies.

The government would appoint up to five merchant bankers for managing the IPO of RVNL and four for RITES. The last day for submitting bids is May 11.

A part of the public offering will be reserved for the employees of the companies. The eligible employees and retail investors will be offered shares at a discount to the issue price.

RITES have presence in the business of engineering consultancy and project management. RVNL raises extra budgetary resources and executes projects for augmenting rail infrastructure on fast-track basis.