Govt to sell up to 15 pc stake in Rail Vikas Nigam Ltd via OFS

New Delhi, October 23

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The government is planning to sell up to 15 per cent stake in the Rail Vikas Nigam Ltd (RVNL) and has invited bids from merchant bankers for managing the share sale process.

“The GoI intends to disinvest up to 15 per cent paid up equity capital of RVNL out of its shareholding of 87.84 per cent through Offer for Sale (OFS) method of shares by promoters through the stock exchanges,” the Department of Investment and Public Asset Management (DIPAM) said while inviting bids from merchant bankers.

The government will appoint up to three merchant bankers for managing RVNL share sale.

The responsibilities of the merchant banker include advising the government on the timing and the modalities of the OFS, ensuring best return to the government, conducting market survey, domestic and international road shows and investor meetings, it said.

Shares of RVNL closed at Rs 18.80 on Friday, up 0.53 per cent over the previous close on the BSE.

At the current market price, a 15 per cent stake sale would fetch about Rs 580 crore to the exchequer.

RVNL had posted a profit after tax of Rs 789.86 crore during 2019-20. As on March 31, 2020, it had a net worth of Rs 4,499.77 crore.

During the current financial year, the government has mopped up Rs 6,138.48 crore through OFS and initial public offering (IPO) of PSUs. PTI