The initial public offering (IPO) of the state-owned Rail Vikas Nigam Ltd (RVNL) opens on Friday, 29 March, and will close on 3 April.
The company with Mini Ratna-I status is offering 25.34 crore shares at a price band of Rs 17-19 per equity share, Livemint reported, adding that RVNL will not receive any proceeds from the offer for sale as the government is selling about 12 percent stake in the company.
A total of over 6 lakh shares have been reserved for eligible employees and bidders (retail investors and employees) will get a discount in the IPO.
RVNL IPO Lot Size & Retail Discount
Investors will have to apply for a minimum of 780 shares or multiples, according to Livemint report.
RVNL is offering a discount equivalent to Rs 0.50 per equity share on the offer price to retail individual bidders and eligible employee bidders.
The registrar to RVNL offer is Alankit Assignments.
Listing of Equity Shares
The equity shares of the company will be listed on the BSE and NSE, and trading will most likely begin within six working days from IPO closing date (3 April).
The total order book of RVNL as of 31 December 2018 stood at Rs 77,504.28 crore, NDTV reported. This includes laying new railway lines, doubling of tracks, gauge conversion, railway electrification and bridge construction works.
Rail Vikas Nigam Limited (RVNL) is a 100% owned PSU of Ministry of Railways (MoR) which was incorporated in 2003 with the twin objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis.
RVNL mobilises extra budgetary resources through a mix of equity and debt from banks, financial institutions, multilateral agencies like Asian Development Bank and bilateral agencies for project execution through PPP for creation and augmentation of capacity of rail infrastructure.
The paid up equity capital of the company is Rs 2,085 crore.