Rail Vikas Nigam makes lukewarm debut

Shares of Rail Vikas Nigam were trading at Rs 19.20 at 13:55 IST on BSE, a premium of 1.05% over the initial public offer price of Rs 19.

The stock debuted at Rs 19, at par with the initial public offer (IPO) price. So far the stock hit a high of Rs 19.75 and low of Rs 18.60. On BSE, so far 98.36 lakh shares were traded on the counter.

The IPO of Rail Vikas Nigam received bids for 46.33 crore shares. The IPO was subscribed 1.83 times. The issue opened for subscription on 29 March 2019 and closed on 3 April 2019. The price band for the issue was fixed at Rs 17 to Rs 19 per share.

The qualified institutional buyers (QIBs) category was subscribed 1.36 times. The retail individual investors (RIIs) category was subscribed 2.93 times. The non-institutional investors category was subscribed 80%.

The offer comprised offer for sale by the government of India of 25.34 crore shares. The objects of the issue is to carry out the divestment program of the government of India apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders. Government of India will hold 87.9% of total paid up equity share capital of the company post listing.

Incorporated in 2003 by the President of India through the Ministry of Railway (MoR), Rail Vikas Nigam is a Category 1 Mini Ratna Company with a status of Schedule A - Public Sector Enterprise. Rail Vikas Nigam is a Project Executing Agency working for and on behalf of MoR. RVNL is in the business of executing all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable stayed bridges and institution buildings.

On a consolidated basis, Rail Vikas Nigam reported profit after tax of Rs 229.27 crore and net sales of Rs 3622.88 crore in half year ended 30 September 2018.

Powered by Capital Market - Live News