Rail Vikas Nigam offer for sale subscribed 1.6 times, shows BSE data

The offer for sale (OFS) in Rail Vikas Nigam garnered 1.6 times more bids than shares on offer. As per data provided by BSE, the OFS saw bids for 174.4 million shares from institutional investors as against a total of 111.76 million shares put on the block by the government.

Most of the bids came in at Rs 122 per share, higher than the floor price of Rs 119. Through the share sale, the government will be able to mop up Rs 1,360 crore. 

About 11.18 million shares reserved for retail investors will be auctioned on Friday. In case of a shortfall in retail demand, the shares will be allotted to institutional bidders. 

Shares of Rail Vikas fell 6.1 per cent to end at Rs 126 in secondary market trading. Following the OFS, the government’s stake in Rail Vikas will drop from 78.2 per cent to 72.84 per cent.

After the latest share sale, the government’s disinvestment proceeds for the financial year 2023-24 are set to cross Rs 5,500 crore. In June, the government had sold a 3 per cent stake in Coal India, also via an OFS, for Rs 4,186 crore.