New Delhi, Jul 27 (PTI) The government's 5.36 per cent stake sale in RVNL on Thursday got an enthusiastic response from institutional investors, who subscribed the issue 2.73 times by putting in bids of over Rs 2,000 crore.
In the two-day offer-for-sale (OFS), the government is selling 11.17 crore shares, representing a 5.36 per cent stake at a floor price of Rs 119 apiece. The offer includes a greenshoe option of an additional 4.08 crore shares or 1.96 per cent stake in Rail Vikas Nigam Ltd (RVNL).
"Offer for sale in RVNL received an enthusiastic response from non-retail investors today... Government has decided to exercise the green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
The issue will open for retail investors on Friday.
On the first day of the share sale, institutional buyers put in bids for 17.44 crore shares against the base issue size of 6.38 crore. At an indicative price of Rs 121.76 apiece, the bids are worth close to Rs 2,100 crore.
Shares of RVNL closed at Rs 125.25, down 6.77 per cent over the previous close of the BSE.
The government currently holds a 78.20 per cent stake in RVNL.
RVNL was incorporated in January 2003 as a 100 per cent owned public sector unit of the Ministry of Railways, with the objective of raising extra-budgetary resources and implementing projects relating to the creation and augmentation of the capacity of rail infrastructure on a fast-track basis.
So far in the current fiscal, the government has raised Rs 4,235 crore, including Rs 4,185 crore from share sales in Coal India. The full-year budget target from disinvestment is Rs 51,000 crore. PTI JD JD BAL BAL