The initial public offering of Rail India Technical and Economic Services (RITES) will open for subscription on Wednesday.

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With a price band set at Rs 180-185 per share, the government is aiming to raise Rs 466.2 crore by selling a 12 percent stake.

Rajeev Mehrotra, chairman and managing director of RITES, told CNBC-TV18 that the company's focus will remain on the consultancy business after the IPO.

“This is 12.6 percent of the holding being offered by government of India through IPO and post IPO, the government will continue to own 87.4 percent. So this is purely an offer-for-sale,” he said.

“Price band has been announced as Rs 180-185. This will give about Rs 3,700 crore of valuation to the company,” he added.

“We will continue to remain predominantly a consulting company but we have added, over the past decades, few businesses which are fairly stable, giving growth to the company profitably,” said Rajeev Mehrotra, chairman and managing director of RITES.

First Published:Jun 20, 2018 9:12 AM IST