Rail Vikas Nigam Ltd plunges over 8 per cent on govt stake sale

Source: The Hindu Business Line | Title: Rail Vikas Nigam Ltd plunges over 8 per cent on govt stake sale

The shares of Rail Vikas Nigam Ltd plunged over 8 per cent on Wednesday in a weak market as the offer-for-sale by the government in the company begins today for non-retail investors.

At 12:40 pm, it was trading at ₹27.85 on the BSE, down ₹2.55 or 8.39 per cent. It hit an intraday high of ₹28.40 and an intraday low of ₹27.80. It opened at ₹28.35 as against the previous close of ₹30.40.

On the NSE, it was trading at ₹27.85, down ₹2.60 or 8.54 per cent.

L&T bags ₹5,000 crore order from Rail Vikas Nigam in Uttarakhand

Green shoe option

The government plans to divest 10 per cent equity with a 5 per cent Green Shoe option to raise nearly ₹750 crore.

The offer-for-sale by the Government in Rail Vikas Nigam opens today for non-retail investors and on Thursday for retail investors at a floor price of ₹27.50.

Getting real on divestment

The Centre plans to sell 31.27 crore shares (20.85 crore shares base issue and 10.42 crore shares greenshoe option) through the OFS. The offer shares will represent 15 per cent of the outstanding equity shares of the company.

Read More | Source: The Hindu Business Line

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