NEW DELHI: The government is looking to divest 5.36% stake in Rail Vikas Nigam Ltd (RVNL) through an offer for sale (OFS) issue which opens on 26 July. The government, which owns 78.20% stake in the RVNL, could raise Rs 1,500 crore through the OFS.
Offer for sale in RVNL opens on July 26 for non-retail investors. Retail investors can bid on July 28.
The government proposes to sell up to 7,08,90,683 equity shares of Rail Vikas Nigam Limited (representing 3.40% of the total paid up Equity Share capital of the Company) on July 27, 2023, for non-retail investors and on July 28 for retail investors and for non-retail Investors (who choose to carry forward their unallotted bids).
The OFS has a green shoe option to sell an additional 4,08,66,394 equity shares (representing 1.96 % of the total issued and paid up equity share capital of the company). Retail investors could bid for a maximum of 10% of the shares on sale. The floor price for the sale has been fixed at Rs 119, which is 11% lower than the Wednesday closing price of Rs 134.35. RVNL is a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Railways.