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Rail Vikas Nigam tumbles as OFS begins

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Capital Market
Last Updated : Mar 24 2021 | 1:04 PM IST

Rail Vikas Nigam slumped 8.22% to Rs 27.90 after the offer for sale (OFS) opened for non-retail investors today, 24 March 2021.

Through the OFS, the Government of India proposes to sell up to 20,85,02,010 equity shares (representing 10% stake), with an option to sell an additional 5% stake or 10,42,51,005 equity shares in case of oversubscription. The floor price for the OFS is Rs 27.50 per equity share, at a 9.54% discount to Rail Vikas Nigam's closing price of Rs 30.40 on Tuesday, 23 March 2021.

The total OFS size (base size + green shoe) stands at 31,27,53,015 shares, representing 15% of outstanding equity shares of the company, aggregating to Rs 860.07 crore.

The Government of India held 87.84% stake in Rail Vikas Nigam as of 31 December 2020.

The OFS opened on Wednesday (24 March 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday (25 March 2021). A total of 10% of the offer size is reserved for retail investors.

As on 12:05 IST, the OFS received subscription for 90,33,748 shares. It was subscribed 4.81% on the base non-retail total offer size of 18,76,51,809 shares and 3.21% on the total non-retail total offer size (base size + green shoe) of 28,14,77,713 shares.

Rail Vikas Nigam is an organization associated with Indian Railways involved in building rail infrastructure required by the railways.

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The company's consolidated net profit surged 171.57% to Rs 281.02 in Q3 FY21 from Rs 103.48 crore in Q3 FY20. Net sales during the quarter rose 0.90% YoY to Rs 3732.44 crore.

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First Published: Mar 24 2021 | 12:20 PM IST

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