RITES IPO
RITES Ltd, a wholly state-owned consultancy firm, will come out with an initial public offering (IPO) of 10 million fresh shares in the next 3-4 months to raise at least Rs 115 crore to finance projects. The government will also piggyback the IPO to divest 10 per cent stake in the company by offering 4 million shares for sale.
The Cabinet Committee on Economic Affairs (CCEA), which met today, gave its approval for listing of RITES Ltd.
The sale of 14 million shares will see 28 per cent stake dilution by government, whose holding will come down to 72 per cent post-share sale.
“About 14 lakh (1.4 million) shares will be reserved for employees of RITES in the IPO,” said P Chidambaram after the CCEA meeting.
Chidambaram said the book value of the share of the company is Rs 115. However, the offer price will be decided through book building process. The IPO process may take 3-4 months, he added.
After the IPO, paid-up capital of RITES will increase from Rs 4 crore to Rs 5 crore.
RITES has entered in newly emerging business of concession of existing railway lines, built-operate-transfer of rail and infrastructure project and leasing of rail equipment. “The IPO will facilitate raising funds for investment for these projects,” he said.
Copra prices hiked
The government today increased the minimum support price (MSP) for copra by Rs 40 per quintal for 2008 season.
The MSP for Fair Average Quality of Milling Copra has been fixed at Rs 3,660 per quintal and for Fair Average Quality of Ball Copra at Rs 3,910 per quintal.
The Cabinet Committee of Economic Affairs (CCEA) took the decision to hike MSP for copra to safeguard the interest of coconut growers, on the recommendations of Commission for Agriculture Costs and Prices.
“The increase in the MSP of Copra is expected to encourage the farmers to step up investment in coconut cultivation, increase production and productivity of coconut in the country,” Finance Minister P Chidambaram told reporters.
MoUs with China
India and China will sign five memoranda of understanding (MoUs) for cooperation in rail, housing and other sectors during a three-day visit of Prime Minister Manmohan Singh to the neighbouring country beginning this Sunday.
The Union Cabinet today approved signing of MoUs in rail, housing, geo-sciences, land resource management and traditional medicine sectors, Information and Broadcasting Minister PR Dasmunsi told reporters here.
The Cabinet also approved the MoU signed by India, Brazil and South Africa in the field of health and medicine last year.
It also approved signing of two MoUs with Italy for cooperation in the agro-food sector, agriculture and phytosanitary issues. The Cabinet also approved signing of an agreement between India and Hungary for cooperation in the field of agriculture and allied sectors.
