RVNL OFS: Share sale receives good investor interest, says DIPAM Secy

In the two-day Offer-for-Sale (OFS), the government had announced to sell 11.17 crore shares of RVNL, representing 5.36% stake at a floor price of ₹119 apiece. The offer included a greenshoe option of an additional 4.08 crore RVNL shares or 1.96% stake.

“RVNL OFS closed with good interest from investors. With this, RVNL is now MPS compliant,” Pandey tweeted.

MPS refers to Minimum Public Shareholding.

On July 27, the first day of share sale, the non-retail investors’ quota received robust subscription as the institutional buyers put in bids for 15.64 crore shares as against the base issue size of 6.38 crore. At an indicative price of ₹121.17 apiece, the bids were worth close to ₹1,900 crore.

The government’s stake sale on RVNL is in order to comply with the minimum public shareholding requirements.

Previously, in 2021, the government sold a 15% share in RVNL via the OFS mechanism.

In another development, RVNL on Friday announced the receipt of a Letter of Award (LoA) from Haryana Rail Infrastructure Development Corporation (HRIDC) for a project worth ₹1,088 crore. 

The LoA is for “Package No. C-4: Composite Contract Package in connection with New BG railway line of HORC project.”

The estimated cost of the project is ₹1,088.49 crore and the time period by which it is to be executed is 1,460 days (4 years). 

On Friday, RVNL share price ended 4.12% lower at ₹120.95 apiece on the BSE.

Updated: 28 Jul 2023, 08:52 PM IST