Government To Sell 15% Stake In Rail Vikas Nigam
Trains sit idle at the Delhi Junction railway station during a lockdown imposed due to the coronavirus in Delhi, India. (Photographer: T. Narayan/Bloomberg)

Government To Sell 15% Stake In Rail Vikas Nigam

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The government on Tuesday said it will dilute 15% stake in Rail Vikas Nigam Ltd. via an offer for sale to raise nearly Rs 750 crore.

The issue will open on Wednesday for non-retail investors, and on Thursday for retail investors.

"Offer for Sale in RVNL opens tomorrow for Non Retail investors. Retail investors can bid on Thursday. Government would divest 10% equity with a 5% Green Shoe option," Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said in a tweet.

The floor price has been fixed at Rs 27.50 a share, a 9.54% discount to Tuesday's closing price of Rs 30.40 apiece on the BSE.

RVNL was incorporated as a 100% owned PSU of the Ministry of Railways on January 2003 with the objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis.

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