RVNL Shares Plummet Nearly 7%

27 Jul 2023 , 03:19 PM

Rail Vikas Nigam Ltd (RVNL) shares decline by nearly 7% as the government initiates an offer for sale (OFS) to reduce its stake by up to 5.36 %.

During the morning trade on July 27, RVNL stock drops by 6.6 % approximately, trading at Rs 129 on BSE, down 4 % from its previous close.

The OFS offer price is set at Rs 119 per share, offering more than an 11 % discount compared to the closing price of Rs 134.40 on July 26.

The government aims to raise approximately Rs 1,330 crore through this divestment, seeking participation from non-retail and retail investors.

Non-retail investors can participate in the OFS on July 27, while retail investors have the opportunity to take part on July 28.

The government plans to divest 5.36 % equity, including a green shoe option of 1.96 %, involving the offloading of 11.17 crore shares in the rail PSU.

RVNL, known for its role as the construction arm of the Ministry of Railways, recently secured a Rs 808-crore contract from the National Highways Authority of India for a project in Odisha.

The contract involves the rehabilitation and upgrade of the Chandikhole-Paradip Section, expanding it from four to eight lanes.

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