BackRVNL to sell 15% stake to raise around ₹800 crore
After selling 15% stake, RVNL will meet the minimum 25% public shareholding norm set by the market regulator SEBIRVNL last month reported a consolidated net profit of ₹281 crore for the December quarter, a jump of 171% over the same quarter a year ago
PremiumThe central government will sell 15% of its stake in Rail Vikas Nigam Ltd (RVNL) through an offer for sale (OFS) to raise around ₹800 crore. The issue will open on Wednesday first for non-retail investors and on Thursday for retail investors, the company said in a regulatory filing to stock exchanges on Tuesday.
At present, government has 87.84% stake in RVNL with the rest 12.16% with the public. After selling 15% stake, RVNL will meet the minimum 25% public shareholding norm set by the market regulator SEBI.
The floor price has been fixed at ₹27.50 a share at a discount to the closing price of ₹30.40 a piece on the Bombay Stock Exchange on Tuesday.
“Offer for Sale in RVNL opens tomorrow for Non Retail investors. Retail investors can bid on Thursday. Govt. would divest 10% equity with a 5% Green Shoe option," DIPAM secretary Tuhin Kanta Pandey tweeted from his official Twitter handle.
For FY21, finance ministry has slashed its disinvestment target to ₹32,000 crore from ₹2.1 trillion due to the disruptions caused by the covid pandemic. DIPAM has so far mopped up ₹31,006 crore, with its latest exit from Tata Communications Ltd (TCL). Finance ministry has set an ambitious disinvestment target of ₹1.75 trillion for FY22 banking on a string of privatizations including BPCL, Air India and initial public offer of Life Insurance Corporation.
RVNL last month reported a consolidated net profit of ₹281 crore for the December quarter, a jump of 171% over the same quarter a year ago. RVNL was incorporated as an 100% owned PSU of Ministry of Railways in 2003 with the twin objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis. RVNL became fully functional by March 2005.
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