The Indian government is set to offload 5.36% stake in Rail Vikas Nigam in an offer-for-sale that could add Rs 1,329 crore to the centre’s coffers, according to a filing by the exchanges. The government currently owns a 78.2% stake in the company, and has proposed to divest a 3.4% stake, with an additional green-shoe option to divest 1.96% more in the case of oversubscription. The floor price for the offer has been set at Rs 119 apiece, with 11.17 crore shares up for sale. The floor price comes at a 11.36% discount from Wednesday’s closing price of Rs 134.25 per equity share.
Who can invest?
Non-retail investors have the ability to bid for the offer on 27 July during trading hours. The offer will take place on a separate window of the stock exchange pages. In the case of under-subscription or the government exercising the green-shoe option, retail investors will be allowed to bid on the T+1 day, that is 28 July. “Further, those non-Retail Investors who have placed their bids on T day and have chosen to carry forward their unallotted bids to T+1 day. shall be allowed to revise their bids on T+1 day as per the OFS guidelines,” added the exchange filing. Any unsubscribed portion of the non-retail Category after allotment shall be eligible for allocation in the retail category.
RVNL was incorporated in January 2003 as a 100% owned public sector unit of the Ministry of Railways with the objective of raising extra-budgetary resources and implementation of projects relating to the creation and augmentation of capacity of rail infrastructure on a fast-track basis.
(With agency inputs.)