RITES OFS opens on bourses; stock slumps 5 pc

New Delhi, Feb 27 () The government's offer-for-sale (OFS) for selling up to 10 per cent stake in railway PSU RITES opened on stock exchanges on Thursday.

The floor price for the OFS has been fixed at Rs 298, which is a discount of 6 per cent over Wednesday's closing price of Rs 318.05.

The government is selling 5 per cent stake in the company, with an option to retain an over subscription of another 5 per cent, taking the total issue size to 10 per cent.

The share sale opened for institutional investors on Thursday, while retail buyers can put in their bids on Friday.

"For retail open on 28.02.20 with discount of Rs 8 over cut off price," Secretary in the Department of Investment and Public Asset Management (DIPAM) said in a tweet.

Government currently holds 77.39 per cent stake in RITES and with this share sale the company would become compliant with Sebi's minimum public shareholding requirement.

Shares of RITES were trading at Rs 302.45, down 4.90 per cent on BSE. JD DRRDRR

(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)

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