New Delhi, Jan 17 (PTI) As many as two state-ownedcompanies -- RITES Ltd and Mishra Dhatu Nigam Ltd -- havefiled draft papers with markets regulator Sebi to floatinitial public offerings so far this week.
Incorporated by the railways ministry, RITES providestransport consultancy and engineering services, while MishraDhatu Nigam (MIDHANI) comes under the defence ministry.
The move comes after another state-run Indian RenewableEnergy Development Agency (IREDA) approached the marketsregulator last month with its IPO papers.
The proposed initial public offers (IPOs) would help thegovernment to meet its ambitious disinvestment target of Rs72,500 crore for the current fiscal.
RITES has filed its draft red herring prospectus (DRHP)with Sebi on Monday, while MIDHANI has approached the marketsregulator on Tuesday.
The public issues will help the companies in achievingthe benefits of listing, enhance visibility as well as brandimage and provide liquidity to shareholders.
Going by the draft papers, RITES' IPO will see sale of2.4 crore equity shares, amounting to 12 per cent, by thepromoter.
According to merchant banking sources, the public issueis expected to fetch around Rs 600 crore.
Elara Capital (India) Pvt Ltd, IDBI Capital Markets andSecurities Ltd, IDFC Bank Ltd and SBI Capital Markets Ltd willmanage the company's IPO.
RITES had a profit after tax (PAT) of Rs 362 crore in2016-17 and a revenue from operations was at Rs 1,354 crore.
Finance Minister Arun Jaitley had announced in the UnionBudget in February last year the government's plan to listrail PSUs.
RITES, RVNL, IRCON, Indian Railway Finance Corp (IRFC)and Indian Railway Catering and Tourism Corporation Ltd(IRCTC) are the public sector undertakings into the railways.
The public issue of MIDHANI will see sale of up to46,835,000 equity shares, or 25 per cent stake, by thecompany's promoter.
It is engaged in the production of metals and alloys aspart of an import substitution strategy, which is designed toreduce India's reliance on foreign suppliers and achieveself-sufficiency.
During 2016-17, the firm had posted a profit after tax ofRs 126.31 crore and a total revenue of Rs 833.09 crore.
SBI Capital Markets and IDBI Capital Markets andSecurities Ltd will be the merchant bankers for the issue.
In April last year, the Cabinet had cleared thedisinvestment of the PSU and thereafter DIPAM had invited bidsfrom merchant bankers and legal advisors for managing thestake sales. PTI SPSBT.
This is unedited, unformatted feed from the Press Trust of India wire.