The authorities’s 5.36% stake sale in Rail Vikas Nigam Ltd (RVNL) on Thursday obtained an enthusiastic response from institutional buyers, who subscribed to the problem 2.73 instances by placing in bids of over ₹2,000 crore.
In the two-day offer-for-sale (OFS), the federal government is promoting 11.17 crore shares, representing a 5.36% stake at a flooring value of ₹119 apiece. The provide features a greenshoe possibility of an extra 4.08 crore shares or 1.96% stake in (RVNL).
“Offer for sale in RVNL received an enthusiastic response from non-retail investors today… Government has decided to exercise the green shoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
The subject will open for retail buyers on Friday.
On the primary day of the share sale, institutional buyers put in bids for 17.44 crore shares in opposition to the bottom subject dimension of 6.38 crore. At an indicative value of ₹121.76 apiece, the bids are worth near ₹2,100 crore.
Shares of RVNL closed at ₹125.25, down 6.77% over the earlier shut of the BSE.
The authorities at the moment holds a 78.20% stake in RVNL.
RVNL was integrated in January 2003 as a 100% owned public sector unit of the Ministry of Railways, with the target of elevating extra-budgetary sources and implementing tasks referring to the creation and augmentation of the capability of rail infrastructure on a fast-track foundation.
So far within the present fiscal, the federal government has raised ₹4,235 crore, together with ₹4,185 crore from share gross sales in Coal India. The full-year funds goal from disinvestment is ₹51,000 crore.
