Shares of Rail Vikas Nigam Ltd (RVNL) will be in focus on Thursday morning as the two-day offer for sale (OFS) kicks off. The government is looking to sell 5.36 per cent stake in the railways PSU and has set a floor price of Rs 119, which was at a 12 per cent discount over Wednesday's price. In a filing to BSE, RVNL said their government would sell up to 70,890,683 shares of Rail Vikas Nigam, representing 3.40 per cent of the total paid up equity share capital of the company. The offer will be open for subscription for non-retail Investors only on Thursday and for retail investors (and for non-retail Investors who choose to carry forward their un-allotted bids) on Friday.
RVNL shares closed at Rs 134.35 on Wednesday, up 3.87 per cent.
The OFS will have an option to additionally sell 40,866,394 shares, representing another 1.96 per cent of the total issued and paid up equity share capital -- through a separate, designated window of the BSE and the NSE, collectively representing 5.36 per cent of the total issued and paid up equity share capital of the company.
"Such number of equity shares as would be equivalent to up to 0.5 per cent of the offer shares may be offered to eligible employees of the company subsequent to completion of the offer, in accordance with the terms and conditions provided in the OFS Guidelines, subject to approval from the competent authority (the "Employee Offer"). The eligible employees may apply for Equity Shares amounting up to Rs 500,000," RVNL said.
RVNL said the offer will take place on a separate window of the stock exchanges from 9:15 am to 3:30 pm on both days.
Only non-retail Investors will be allowed to place their bids on T day, i.e., July 27. While placing their bids, non-retail Investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of retail category.
Those non-retail Investors who have placed their bids on T day and have chosen to carry forward their un-allotted bids to T+1 day, shall be allowed to carry forward and also revise their bids on T+ 1 day as per the OFS Guidelines.
For retail investors (defined below) and for non-retail investors who choose to carry forward their un-allotted bids to T+1 Day, the Offer shall continue to take place during trading hours on a separate window of the Stock Exchanges on T+1 day, i.e., July 28, 2023 commencing at 9:15 a.m. and would close on the same date at 3:30 p.m. Indian Standard Time on the same date.
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