Centre announces OFS for RVNL, to sell up to 5.36% stake
The floor price for the RVNL OFS shall be ₹119 per equity share, the government informed via a stock regulatory filing.
PremiumThe central government on 26 July announced the 'Offer for Sale' of Rail Vikas Nigam Ltd's 5.36 stake, it informed via a stock regulatory filing.
The notice said, "The Ministry of Railways has submitted to BSE a copy of notice of the proposed OFS up to 70,890,683 equity shares of RVNL on 27 July, 2023, (T day) and on 28 July, 2023 (T+1 day) with an option to additionally sell 40,866,394 equity shares through a separate, designated window of the BSE Limited and the NSE collectively representing 5.36% of the total issued and paid up equity share capital of the company in accordance with the OFS guidelines."
The central government said that the floor price for the RVNL OFS shall be ₹119 per equity share. Though there is a discount of nearly 11 percent from RVNL's current market price.
The OFS will be open for non-retail and retail investors on July 27 and July 28 respectively.
"Offer for sale in RVNL opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 5.36 percent equity including a green shoe option of 1.96 percent," Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said in a tweet.
As per the plan, the government is mulling to offload 11.17 crore shares amounting to a stake of 5.36 percent in the rail PSU. The proposal also includes a green shoe option of 1.96 percent in case of oversubscription.
Under OFS, public companies' promoters can sell their shares through the bidding platform for the exchanges and reduce their holdings in a transparent manner.
Recently, RVNl had bagged a ₹808-crore contract from the National Highways Authority of India (NHAI) for rehabilitation and upgrade of the Chandikhole-Paradip Section of NH-53 in Odisha from four to eight lanes.
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