Government of India to raise up to ₹1,330 crore from Rail Vikas Nigam OFS, fall nearly 7% as OFS kicks off
government is making the offer in order to comply with the minimum public shareholding requirements. All listed firms must maintain a public shareholding of at least 25%, as mandated by the Securities and Exchange Board of India (SEBI). Previously, in 2021, the government sold a 15% share in RVNL via the OFS mechanism.
The Government of India, acting through the Ministry of Railways, is the promoter of Rail Vikas Nigam Limited (the "Company") and plans to offer for sale a portion of its equity shares through the stock exchange mechanism. The offer includes selling up to 70,890,683 Equity Shares (3.40% of the total paid-up equity share capital) on July 27, 2023, for non-retail investors, and on July 28, 2023 (T+1 Day), for retail investors and non-retail investors who choose to carry forward their un-allotted bids. Additionally, the government wishes to exercise the Oversubscription Option, selling up to 40,866,394 Equity Shares (1.96% of the total paid-up equity share capital) in addition to the Base Offer Size.
The total offer size will be up to 111,757,077 Equity Shares (5.36% of the total paid-up equity share capital of the Company). Out of this, 11,175,708 Equity Shares will be available for the Retail Category on July 28, 2023. This offer for sale is in compliance with the relevant circulars issued by the Securities and Exchange Board of India (SEBI).
On today, only non-retail investors will be permitted to submit their offers. Non-retail investors may carry forward and also revise their offers on T+1 day in accordance with the OFS rules if they submitted unallotted bids on today and choose to do so on T+1 day. The offer will still be available to retail investors on T+1 day, or July 28, during trading hours on a
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