The Indian government proposes to sell up to 5.3 percent stake in state-owned Rail Vikas Nigam Ltd (RVNL) through an offer for sale (OFS) on July 27, 2023.
The total number of shares offered for sale is 111,757,077, which comprises both the base offer size and the green shoe option. The base offer size consists of 70,890,683 shares, and the green shoe option accounts for 40,866,394 shares.
"Offer for sale in RVNL opens tomorrow for non-retail investors. Retail investors can bid on Friday. Government will divest 5.36% equity including a Green Shoe option of 1.96%," DIPAM Secretary Tuhin Kanta Pandey said in a tweet.
The floor price of the offer is fixed at Rs 119 and the current market price is Rs 134.80. Non-retail investors can place their bids on July 27 and retail investors can participate in the OFS on July 28.
As of the June quarter, the government held a 78.2 percent stake in RVNL.
RVNL was incorporated as a 100 percent owned PSU of the Ministry of Railways on January 2003, with the objectives of raising extra-budgetary resources and implementation of projects related to the creation and augmentation of the capacity of rail infrastructure on a fast-track basis.
Shares of Rail Vikas Nigam Ltd ended at Rs 134.35, up by Rs 5, or 3.87 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
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