RITES Limited IPO
Rites Limited IPO
(i) RITES Limited is a wholly owned Government Company, a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India and the only company having diversified services and geographical reach in this field under one roof (Source: IRR Report). Based on Public Enterprise Survey 2015-2016, the Company is ranked no. 1 based on net profit and dividend declared in Industrial Development and Technical Consultancy Services sector (Source: IRR Report). They have an experience spanning 43 years and have undertaken projects in over 55 countries including Asia, Africa, Latin America, South America and Middle East regions. They are the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).
(ii) They are a multidisciplinary engineering and consultancy organization providing diversified and comprehensive array of services from concept to commissioning in all facets of transport infrastructure and related technologies. They have significant presence as a transport infrastructure consultancy organization in the railway sector. However, they also provide consultancy services across other infrastructure and energy market sectors including urban transport, roads and highways, ports, inland waterways, airports, institutional buildings, ropeways, power procurement and renewable energy. They have, over the years, served various public sector undertakings, government agencies and instrumentalities and large private sector corporations, both in India and abroad.
(iii) Since its inception in 1974, they have evolved from the origins of providing transport infrastructure consultancy and quality assurance services and have developed expertise in:
1. Design, engineering and consultancy services in transport infrastructure sector with a focus on railways, urban transport, roads and highways, ports, inland waterways, airports, and ropeways.
2. Leasing, export, maintenance, and rehabilitation of locomotives and rolling stock.
3. Undertaking turnkey projects on engineering, procurement and construction basis for the railway line, track doubling,3rd line, railway electrification, up gradation works for railway transport systems and workshops, railway stations, and construction of institutional/ residential/ commercial buildings, both with or without equity participation
4. Wagon manufacturing, renewable energy generation and power procurement for Indian Railways through our collaborations by way of joint venture arrangements, subsidiaries or consortium arrangements.
(iv) On the Financial front the Company has established a consistent track record of strong financial performance and growth. The revenue from operations on a consolidated basis for the FY15, FY16 and FY17 and the six months ended September 30, 2017, amounted to ₹10,12.688 million, ₹10,905.30 million, ₹13,538.04 million and ₹5,644.02 million, respectively. Our profit after tax was ₹3,122.88 million, ₹2,827.31 million, ₹3,624.16 million and ₹1,422.21 million, respectively, for the same periods.
(v) The revenue from operations has increased at a CAGR of 15.62% from ₹10,126.88 million in the Financial Year 2015 to ₹13,538.04 million in the Financial Year 2017, and the profit after tax 48 has increased at a CAGR of 7.73% from ₹3,122.88 million in Financial Year 2015 to ₹3,624.16 million in the Financial Year 2017.
(vi) On a standalone basis, the company has an order book of ₹48,087.25 million as on November 30, 2017 which includes 337 ongoing projects of value over ₹10 million each.
Objects of the RITES Limited IPO:
Rites Limited IPOare: The objects of the Offer are (i) To carry out the disinvestment of 24,000,000 Equity Shares held by the Selling Shareholder in the Company, equivalent to 12% of the issued, subscribed and paid up Equity Share capital of the Company as part of the Net Offer. (ii) To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
RITES Limited IPO Details:
|Open Date:||Jun 20 2018|
|Close Date:||Jun 22 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Size:||466.2 Cr.|
|Lot Size:||80 Shares|
|Issue Price:||₹ 180-185 Per Equity Share|
|Retail Discount:||Rs.6 Per Share|
|Listing Date:||Jul 02 2018|
Promoters And Management:
|(i) Authorized Share Capital 300,000,000 shares at FV@10)||300 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (200,000,000 Shares at FV@10)||200 Cr|
|(iii) Present Issue OFS to public ( 24,000,000 Shares at FV@10)||12% of Paid up capital|
|(iv) Present Issue OFS to Employees ( 12,00,000 Shares at FV@10)||.6% of Paid up capital|
|(v) Reservation for QIB (12,000,000 Shares at FV@10)||50%|
|(vi) Reservation for HNI (3,600,000 Shares at FV@10)||15%|
|(vii) Reservation for Retail (8,400,000 Shares at FV@10)||35%|
|(viii) Paid Up Share Capital after the issue||200 Cr|
Financials of RITES Limited IPO as per DRHP:
|1. Assets and Liabilities Key Parameters|
|Year||Asset(Cr)||Liabilities(Cr)||Net Worth(Cr)||Book Value||D/E [<1.5]||RONW||Receivable days|
|2. Profit n Loss Key Parameters|
|Year||Revenue(Cr)||PAT(Cr)||EBITDA Margins||Profit Margins|
|3. Cash Flow Statement(all figures in Cr)|
|(i) Net Cash Generated from Operation||386.79||63.935||109.68||71.108||242.44|
|(ii) Net Cash Generated from Investment||-29.993||-125.91||169.44||-159.20||-77.386|
|(iii) Net Cash Generated from Financing Activity||-214.56||34.033||-53.256||-65.297||-44.164|
|(iv) Total[ (i)+(ii)+(iii) ]||142.23||-27.94||225.86||-153.39||120.89|