RITES

The shares are proposed to be listed on BSE & NSE. The BRLMs to the issue are Kotak Mahindra Capital, Enam Securities and ICICI Securities.

The object of the issue is to finance the leasing of locomotives, rolling stock and other equipments; to carry on investment in BOT and  BOOT projects; to purchase capital spares and construction of maintenance facilities for leasing contracts; to finance setting up of a design and training center at Gurgaon and for general corporate purposes.

The company intends to use the proceeds from the issue to part finance the above mentioned project cost. The company will deploy Rs 194.90 crore for leasing of locomotives, rolling stock and other equipments; Rs 70 crore to carry out BOT & BOOT projects; Rs 17.60 crore for purchase of capital spares and construction of maintenance facilities for leasing contracts and Rs 11.60 crore to finance the setting up of a designed and training center at Gurgaon.

Incorporated in 1974, RITES is a leading company in transport infrastructure consultancy, engineering and project management services, with operations in India and abroad. The company originally began operations as a consultancy and inspection services outfit. It has now evolved into three distinct fields of business activities, namely, (a) consultancy in transport infrastructure; (b) leasing, export, maintenance and rehabilitation of rolling stock and export and rehabilitation of railway equipment; and (c) running of railway systems under concessional agreements.

The company is also considering entering into BOT and BOOT projects in the future.

Presently, the company have over 600 ongoing projects in India, besides over 30 ongoing projects overseas. It has undertaken projects in over 50 countries, primarily in Africa, Latin America, the Middle East and Asia. The company's domestic as well as overseas clients are national governments and public sector enterprises. The company have also carried out several projects funded by multilateral organisations including the World Bank and ADB.

In India, the clients include various Central and State government ministries, other government bodies, public sector undertakings including IRCON, Konkan Railway Corporation , DMRC, IOCL, NTPC , NALCO, SAIL and NHAI as well as various private companies including Jindal Steel.

The company is engaged in export of locomotives, coaches, DMUs and other rolling stock as well as their spare parts to various countries and provide maintenance support for these assets to its clients abroad. RITES is a nominated agency to export rolling stock and components manufactured by the Indian Railways.

For the year end March 31, 2007, the company posted an income of Rs 571.19 crores and net profit of Rs 112.57 crores as against an income of  Rs 392.37 crores and net profit of Rs 74.06 crores for FY06. For 9 months ended December 31,2007, the company posted an income of Rs 431.22 crores and net profit of Rs 70.04 crore.