RVNL IPO to fetch about Rs 480 cr to govt

The government is expected to raise about Rs 480 crore by selling 12.12 per cent stake in Rail Vikas Nigam Ltd (RVNL) with both retail and institutional investors lapping up the shares reserved for them.

This is the first CPSE disinvestment in the current fiscal, which begun on April 1.

"In a good beginning for the new FY DIPAM has completed the RVNL IPO. The first IPO of the year is expected raise abt Rs 450 to 480 cr. GoI divested 12.12 per cent stake," Secretary DIPAM (Department of Investment and Public Asset Management) said in a tweet Wednesday.

Retail investors subscribed about 2.5 times the shares reserved for them, while Qualified Institutional Buyers (QIBs) portion was subscribed 1.36 times.

The total issue size was 25.34 crore shares and the price band for the initial public offer (IPO) was Rs 17-19 per share.

In April 2017, the Cabinet Committee on Economic Affairs had approved listing of five railway companies -- IRCON international, Rail Vikas Nigam, Indian Railway Finance Corp Ltd, RITES Ltd and Indian Railway Catering and Tourism Corp. Out of these five, IRCON international and RITES was listed in 2018-19.