Rail Vikas Nigam rose 0.18% to Rs 27.75 on the BSE after the company's offer for sale (OFS) concluded on Thursday, 25 March 2021.
Through the OFS, the Government of India proposed to sell up to 20,85,02,010 equity shares (representing 10% stake).
The floor price for the OFS is Rs 27.50 per equity share, at a 9.54% discount to Rail Vikas Nigam's closing price of Rs 30.40 on Tuesday, 23 March 2021.
The Government of India held 87.84% stake in Rail Vikas Nigam as of 31 December 2020.
The OFS opened on Wednesday (24 March 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday (25 March 2021). A total of 10% of the offer size is reserved for retail investors.
On Wednesday (T-day), the OFS received subscription for 19,75,62,294 shares (equivalently was subscribed 105.28%) as against the base non-retail offer size of 2,56,50,000 shares.
Following the decent response on T-day, the government decided to exercise the oversubscription option of 1,10,11,650 shares (0.53% equity) in addition to the base offer.
Accordingly, the final share sale was 21,95,13,660 shares, constituting 10.53% of the paid-up equity share capital of Rail Vikas Nigam.
The government had previously stated that it would sell an additional 5% stake or 10,42,51,005 equity shares in case of oversubscription, taking to the total offer size to 31,27,53,015 shares, representing 15% of outstanding equity shares of the company.
As on 15:30 IST on Thursday (T+1 day), the OFS received total retail bids for 33,77,632 shares or 15.39% of the total enhanced retail offer size of 2,19,51,366 shares.
The issue was subscribed 16.20% on the base retail offer size of 2,08,50,201 shares. There were no bids in the non-retail segment on T+1 day.
Rail Vikas Nigam is an organization associated with Indian Railways involved in building rail infrastructure required by the railways.
The company's consolidated net profit surged 171.57% to Rs 281.02 in Q3 FY21 from Rs 103.48 crore in Q3 FY20. Net sales during the quarter rose 0.90% YoY to Rs 3732.44 crore.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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