The Finance Ministry has decided to shed a 5.36 percent stake in the railway public sector enterprise Rail Vikas Nigam Limited (RVNL) for which the offer for sale (OFS) opens on July 27, the government said.
The floor price for the RVNL OFS shall be Rs 119 per equity share. This is at a discount of nearly 11 percent from RVNL's current market price. The scrip ended 3.87 percent higher at Rs 134.35 apiece on BSE on July 26.
The OFS will be open for non-retail and retail investors on July 27 and July 28 respectively.
"Offer for sale in RVNL opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 5.36 percent equity including a green shoe option of 1.96 percent," Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey said in a tweet.
Moneycontrol had said in an exclusive story on July 11 that the government is planning an OFS in RVNL.
The proposal is to offload 11.17 crore shares amounting to a stake of 5.36 percent in the rail PSU. This will include a green shoe option of 1.96 percent in case of oversubscription, according to a regulatory filing.
An OFS is a simpler method wherein promoters in public companies can sell their shares and reduce their holdings in a transparent manner through the bidding platform for the exchanges.
RVNL works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. It recently bagged a Rs 808-crore contract from the National Highways Authority of India (NHAI) for rehabilitation and upgrade of the Chandikhole-Paradip Section of NH-53 in Odisha from four to eight lanes.
The disinvestment target for the year 2023-24 is Rs 51,000 crore.
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