Rail Vikas Nigam News: Govt to sell 15% of stake in RVNL to raise over Rs 750 cr
The government to divest 10 per cent equity in RVNL and another 5 per cent with green shoe option. It has also allowed the retail investors to bid for stake of the company on Thursday.
The central govt to sell 15 per cent stake in Rail Vikas Nigam Ltd through Offer for Sale option on Wednesday to non-retail investors and is likely to raise over Rs 750 crore. The government to divest 10 per cent equity in RVNL and another 5 per cent with green shoe option. It has also allowed the retail investors to bid for stake of the company on Thursday.
The floor price of the share is fixed at Rs 27.50, which is over 9 per cent discount to today's closing at Rs 30/apiece. The transaction would be carried out by the IDBI Capital and Elara Securities on behalf of the government.
Over 20.8 crore shares would divest through equity and more than 10.4 crore shares by oversubscription option.
The government is the controlling stakeholder with over 87 per cent stake in the company, however, with the OFS it's holding will fall to around 75 per cent stake.
RVNL is fully owned subsidiary of the central government under the ministry of railways. The company is empowered to act as an Umbrella SPV (Special Purpose Vehicle) to undertake project development, resource mobilization among others.
(Authored by Vaibhav Bansode)
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