labels: Railways, Economy - general
Government to divest 28 per cent in RITES news
10 January 2008

Mumbai: The government will divest 28 per cent stake in engineering consultancy firm Rail India Technical and Economic Services Ltd (RITES), a subsidiary of Indian Railways.

The decision to disinvest 28 per cent government equity in RITES was taken at the meeting of the cabinet committee on economic affairs, an official statement said.

RITES Ltd will raise fresh equity through sale of 10 million shares of Rs10 face value each, finance minister P Chidambaram said without disclosing the premium amount.

"After the initial public offer and listing in the capital market, the paid-up capital of RITES will rise from Rs4 crore to Rs5 crore and government holding," the minister said, adding "The government will still be holding 72 per cent of equity in the company."

RITES, a leading consultant and engineer in India, has helped in building infrastructure projects in 60 countries so far.

The proceedings of the IPO will be used to funds RITES' diversified business operations, the company said in a statement.


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Government to divest 28 per cent in RITES