RITES divestment: SBI Cap, Elara, IDBI Cap to advise govt on railway PSU share sale

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26 Aug, 2025 12:21

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Dhirendra TripathiMoneyconrol News

The Department of Investment and Public Asset Management under the Finance Ministry has selected SBI Capital Markets, IDBI Capital Markets & Securities and Elara Securities India to advise it on the proposed initial public offering of RITES, according to officials representing the merchant banks that vied for the mandate.

The miniratna company, falling under the Ministry of Railways, is a consultancy organisation in transport, infrastructure and related technologies.

The IPO will only comprise sale of government’s shares. The percentage of paid-up equity to be divested will be determined based on the post-issue capital of the company. The company currently has a paid-up capital of Rs 200 crore while the authorised capital as on date is Rs 300 crore. Its networth is Rs 1,803 crore.

Rail Vikas Nigam and RITES are the two companies under the Ministry of Railways for which the IPO process is currently underway. In the case of Rail Vikas, the government is in the process of selecting the merchant bankers, the previous exercise having been discarded after merchant bankers were found to be charging too high a price for their services.

Other PSUs under the Railways — Indian Railway Catering and Tourism Corporation, Indian Railway Finance Corporation and IRCON International — are also proposed to be listed on the stock exchanges. Container Corporation of India is the only PSU under the railways ministry that is currently listed.

The government plans to raise Rs 72,500 crore through sale of its shares in various companies. It aims to achieve this by raising Rs 46,500 crore via minority stake sales, Rs 15,000 crore through strategic stake sales and Rs 11,000 from the listing of various public sector insurance companies.

In the last fortnight, the government has selected merchant bankers for divestment of its shares in  NTPC, Steel Authority of India, Rural Electrification Corporation, Power Finance Corporation and NHPC.