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The RITES Rail consulting firm, the first state-owned company to hit the IPO market in the current fiscal year ended the day at Rs 211 on the National Stock Exchange (NSE). The stock started at Rs 190 levels, up 2.7% from its issue price of Rs 185 per share.
Analysts, however, are not in favor of buying the stock at current levels.
According to AK Prabhakar, head of research at IDBI Capital, "the sentiment of the market is not conducive to the purchase of new IPOs, the increase in the share price of the company. Mainly by oversubscription.I advise investors to wait a month – two months before buying the title. "
The initial public offering of Rs 466-crore sparked a strong demand from investors, the issue becoming more and more subscribed. than 67 times. The category reserved for qualified institutional buyers (QIBs) was subscribed 71.72 times, non-institutional investors 194.56 times and individual investors 15.74 times.
The price range for the issue was set at Rs 180-185 per share. The issue consisted of an offer to sell 2.52 million equity securities by the government.
RITES is a public corporation wholly owned by a public sector company Miniratna (Clbad I). It is a leading player in the transportation consulting and engineering industry in India and the only company with diversified services and geographic coverage in this area under one roof, according to IRR Report. IDFC Bank and SBI Capital Markets were reserving senior managers to solve the problem.
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