NEW DELHI: The government is planning to sell up to 15 per cent in Rail Vikas Nigam Ltd (RVNL) and has invited bids from merchant bankers for managing the share sale process. The sale is expected to net the government around Rs 580 crore at the current market price.
“The GoI intends to disinvest up to 15 per cent paid up equity capital of RVNL out of its shareholding of 87.84 per cent through Offer for Sale (OFS) method of shares by promoters through the stock exchanges,” the Department of Investment and Public Asset Management (DIPAM) said while inviting bids from merchant bankers.
According to DIPAM, the government will appoint up to three merchant bankers for managing the sale.
The responsibilities of the merchant banker include advising the government on the timing and the modalities of the OFS, ensuring best returns to the government, conducting market surveys, domestic and international road shows, and investor meetings.
RVNL had posted a profit after tax of Rs 789.86 crore during financial year 2019-20. As on March 31, 2020, it had a net worth of Rs 4,499.77 crore. Earlier this week, secretary, DIPAM, Tuhin Kanti Pandey said that the government is planning to sell 20-25 per cent stake in IRFC through an IPO and 27 per cent stake in state-owned telecom infrastructure provider RailTel Corporation.