Rail Vikas Nigam Limited (RVNL) shares fell as much as 8.55 per cent to hit an intraday low of Rs 27.80 as the offer for sale by the government of India opened for subscription. The government is selling 20.85 crore shares in the company equivalent to 10 per cent of the equity stake with an option to sell additional 10.42 crore shares representing 5 per cent equity stake in case the offer is oversubscribed, according to information on stock exchanges.
The floor price for the offer is Rs 27.50 per share which is at a discount of 9.53 per cent to Tuesday’s closing price on the BSE. The offer for sale will end on March 25.
RVNL was incorporated as an 100 per cent owned PSU of Ministry of Railways on March 24, 2003 with the twin objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis. RVNL became fully functional by March 2005.
RVNL made stock market debut on April 11, 2019 at Rs 19 and as of yesterday the stock has risen 60 per cent from its market debut price.
As of 1:27 pm, RVNL shares traded 9 per cent lower at Rs 27.70, underperforming the Sensex which was down 1.2 per cent.