Rail Vikas Nigam IPO yet to pick up momentum
02 Apr 2019
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The initial public offer (IPO) of Rail Vikas Nigam (RVNL), which got off to a slow start on 29 March, has been subscribed 18 per cent as of 1 April.
The public issue has received bids for 44.8 million equity shares against offer size of 253.4 million shares (excluding anchor investors' portion), as per data available on the exchanges.
RVNL, which operates under the ministry of railways, launched its initial public offer for subscription on 29 March at a price band of Rs17-19 per share.
The offer for sale of 25,34,57,280 equity shares by the Government of India is expected to fetch Rs481 crore at upper end of price band.
Subscription by non-institutional investors so far stood at 3 per cent and that of retail investors stood at 49 per cent.
The qualified institutional buyers portion has not been subscribed till now.
The issue, which includes a reservation of 6,57,280 equity shares for eligible employees, will close on 3 April 2019. Retail investors as well as eligible employee bidders will get shares at a discount of 50 paise per share on final issue price.
It is a wholly-owned government company, a miniratna central public sector enterprise, incorporated by the ministry of railways.
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