Govt to sell up to 5.36% stake in RVNL via OFS at Rs 119 per share

Government will sell a stake of up to 5.36% in state-owned Rail Vikas Nigam Ltd on Thursday, in a deal that could fetch Rs 1,330 crore, an exchange filing showed on Wednesday.

The government, which owns a 78.2% stake in RVNL, has proposed to sell a 3.4% holding in the state-run railway infrastructure company through an offer for sale, with an option to sell 1.96% more if oversubscribed. Offer for sale in RVNL opens tomorrow for non-retail investors. Retail investors can bid on Friday, said Department of Investment and Public Asset Management (DIPAM).

The floor price for the sale has been set at Rs 119 per share, representing an over 11% discount to Rail Vikas stock's closing price on Wednesday.

"Offer for sale in RVNL opens tomorrow for non-retail investors. Retail investors can bid on Friday. Government will divest 5.36% equity including a Green Shoe option of 1.96%," tweeted DIPAM Secretary.

Out of its Rs 51,000-crore divestment target for 2023/24, the government has garnered Rs 4,230 crore through sale of shares in other state-run firms.

In May, the Indian government sold a 3% stake in Coal India.