Govt to sell up to 15 pc stake in RVNL via OFS

By: |
October 23, 2020 5:21 PM

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.

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

The government is planning to sell up to 15 per cent stake in 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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Adani Wilmar completes 20 years of Fortune brand; to set up new plants across businesses
2DoT accepts proposal on ‘0’ prefix for all calls from landlines to mobile phones
3Airlines set to lose $157 billion amid worsening slump: IATA