The IPO of Rail Vikas Nigam Ltd. (RVNL) has been opened for subscription from today. The government rail Public Sector unit (PSU) has issued 25.34 crore shares between price range of ₹17-19 per equity share. with this IPO, RVNL will be third rail PSU to go public and be listed after RITES and IRCON.
Till 12 noon, as per NSE data IPO was subscribed about 0.03 times and the offer for subscription will be open till April 3rd.
With this IPO, Railway Ministry controlled RVNL will raise about ₹481.6 crore. Also, out of total 25,34,57,280 equity shares 6,57,280 will be reserved for the employees. The offer and the net offer shall constitute 12.16% and 12.12%, respectively, of the post offer paid-up equity share capital of the company.
Also read:Rail Vikas Nigam launches IPO for 25 crore equity shares at price width of ₹17-19/share
The government will be selling about 12% of its stake and which will bring government’s stake in RVNL to about 88%.
“The year 2018 saw a dismal listing of IPOs. However, this year seems to be healthy yet again for companies to list on the primary markets with RVNL opening today, Metropolis Healthcare next week and Polycab to be out soon,” Umesh Mehta, head of research at Samco Securities, said.
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Investors who are willing to subscribe have to apply for minimum 780 shares or in its multiple. Also, the eligible employees and retail investors will get a discount of ₹0.50 per share each on the offer price.
RVNL was incorporated by the central government as a project executing agency working under the railway ministry with an aim to undertake rail project development, mobilization of financial resources and implementation of rail projects.
Yes Securities (India) Ltd, Elara Capital (India) Private Ltd and IDBI Capital Markets & Securities Ltd are the book running lead managers to the RVNL’s IPO.
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