Rail Vikas Nigam Limited (RVNL) shares slipped nearly 5% at open on Thursday after the government said it would sell shares in the railway infrastructure firm at a discount.
What Happened? The finance ministry said it plans to sell a 5.36% stake in RVNL through an offer for sale (OFS), which is set to begin on July 27.
The floor price for the RVNL OFS is pegged at ₹119 per equity share, marking a considerable discount of nearly 12% discount from its last traded market price. RVNL’s shares ended at ₹134.35 apiece on Wednesday, rising 4.05% during the session.
The OFS will be open to non-retail investors on July 27, with retail investors getting an opportunity to bid on July 28.
The proposal involves selling 11.17 crore shares, representing a 5.36% stake in the railway public sector undertaking. This includes an extra green shoe option of 1.96% in the case of oversubscription.
Last month, the government The government sold a 3% stake in Coal India for around ₹4,000 crore as the government continues to offload shareholding in public sector firms. Its disinvestment target for the fiscal year 2023-24 stands at ₹51,000 crore.
Price Action: RVNL’s share price dropped 4.6% to ₹128.05 in early trade on Thursday, facing strong selling pressure after the announcement.
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