RITES has filed draft papers with the Securities and Exchange Board of India to raise an estimated Rs 600 crore through an initial share sale. Incorporated by the Railways Ministry, the company provides transport consultancy and engineering services.

The initial public offer (IPO) will see sale of 2.4 crore equity shares, amounting to 12 per cent by the promoter, according to the draft red herring prospectus (DRHP) filed with SEBI.

Explaining the reason behind the public issue, the company said it is aiming to achieve the benefits of listing the equity shares on the stock exchanges. “Further, our company expects that listing of equity shares will enhance our visibility and brand image and provide liquidity to our shareholders. Listing will also provide a public market for the equity shares in India,” the company said.

Elara Capital (India) Pvt Ltd, IDBI Capital Markets & Securities Ltd, IDFC Bank Ltd and SBI Capital Markets Ltd will manage the company’s IPO. According to merchant banking sources, the public issue is expected to fetch around Rs 600 crore. RITES had posted a post-tax-profit of Rs 362 crore and revenue from operations of Rs 1,354 crore in 2016-17.

Finance Minister Arun Jaitley had announced in the Union Budget in February last year the government’s plan to list rail PSUs. RITES, RVNL, IRCON, Indian Railway Finance Corp (IRFC) and Indian Railway Catering and Tourism Corporation Ltd (IRCTC) are the railway PSUs.