State-run Rail Vikas Nigam Ltd. has received capital markets regulator SEBI’s go-ahead to float an initial public offering.
RVNL had filed its draft red herring prospectus with Securities and Exchange Board of India on March 28 and obtained its ‘observations’ on May 17, as per the latest update with the markets watchdog. The market regulator’s observations are necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.
Going by the draft papers, the IPO of RVNL, which builds infrastructure for high speed rail, will see sale of 2.08 crore equity shares or 10 percent stake by the government.
The public issue is being managed by Yes Securities, Elara Capital (India) and IDBI Capital Markets & Securities. The equity shares of the company are proposed to be listed on the BSE and NSE.
So far this year, state-run companies like Mishra Dhatu Nigam, Bharat Dynamics and Hindustan Aeronautics have already got listed on stock exchanges.