Amidst the ongoing disinvestment drive, the government will be selling a 15% stake in the Rail Vikas Nigam Ltd, with a target of raising about Rs 750 crore.
The 15% stake will be diluted via an offer for sale (OFS), opened for non-retail investors on March 24, while retail investors will be able to bid on March 25 (today), according to the Secretary, Department of Investment and Public Asset Management (DIPAM).
15% Stake Dilution of RVNL
The Rail Vikas Nigam Ltd is a fully owned PSU of the Ministry of Railways set up in 2003, with the objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis, states Bloomberg.
The centre has decided to sell 15% stake in the PSU through OFS to raise a sum of about Rs 750 crore.
While the issue was opened to non-retail investors on Wednesday, it will open for retail investors today.
The tweet by Secretary, DIPAM, Tuhin Kanta Pandey reads that the government would divest 10% equity with a 5% Green Shoe option.
All You Need to Know
The floor price of the share (RVNL) is fixed at Rs 27.50/share, which is discounted by 9% as compared to its previous closing price at Rs 30/share.
RVNL has a lower price band of Rs 24.35 and an upper price band of Rs 36.45.
One can place their orders on RVNL’s shares on BSE and NSE. While BSE will act as the designated stock exchange, NSE will act as the designated clearing corporation, mentions a wire agency.
A total of 20.85 crore shares are divested through equity, while a maximum of 10.85 crore shares is to be divested through the over-subscription option.