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Government proposes to sell up to 5.36% stake in Rail Vikas Nigam

Jul 27, 2023

By: BlinkX Research Team

The government of India intends to sell 5.36% of its shares in Rail Vikas Nigam Ltd. through an offer for sale. The sale will be open to non-retail and retail investors on July 27 and July 28.

The floor price for the OFS will be Rs 119 per share, which is 8% less than the stock’s Wednesday closing price of Rs 129.35. The company would sell more than 7.08 crore equity shares, each with a face value of Rs 10. This represents 3.4% of the total paid-up equity share capital. According to a filing with the exchange, the government will keep the green-shoe option of selling an additional 1.96% ownership. “Offer-for-sale in RVNL opens tomorrow for non-retail investors. Retail investors can bid on Friday,”

Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said in a tweet.

According to the shareholding structure as of the quarter ending June, the government—via the President of India—owns 78.2% of RVNL, with the remaining shares being held by the general public.

Source: Media Reports