Rail Vikas Nigam IPO To Fetch About Rs 480 Crore To Government
The government is expected to raise about Rs 480 crore by selling 12.12 percent stake in Rail Vikas Nigam Ltd. with both retail and institutional investors lapping up the shares reserved for them.
This is the first Central Public Sector Enterprise disinvestment in the current fiscal, which started 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 about Rs 450-480 crore. Government of India divested 12.12 percent stake," Atanu Chakraborty, secretary at the Department of Investment and Public Asset Management, said in a tweet.
Retail investors subscribed about 2.5 times the shares reserved for them, while qualified institutional buyers portion subscribed 1.36 times.
The total issue size was 25.34 crore shares and the price band for the initial public offer was Rs 17-19 apiece.
In April 2017, the Cabinet Committee on Economic Affairs had approved listing of five railway companies —IRCON International Ltd., 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.