RVNL shares fall 7% as two-day OFS kicks off

Shares of Rail Vikas Nigam (RVNL) fell nearly 7% to Rs 125.5 in Thursday's trade on BSE as the two-day offer for sale (OFS) kicks off.

The government is looking to sell 5.36% stake in the railways PSU and has set a floor price of Rs 119, which was at a 12% discount from the Wednesday's price.

Under the proposed OFS, the government will offload about 7.08 crore equity shares, representing 3.4% equity on Day 1, which is the T day, and in the case of oversubscription, an additional 1.96% stake will be sold.

RVNL said the offer will take place on a separate window of the stock exchanges from 9:15 am to 3:30 pm on both days.

Only non-retail investors will be allowed to place their bids on T day. Those non-retail investors who have placed their bids on T day and have chosen to carry forward their unallotted bids to T+1 day, will be allowed to carry forward and also revise their bids on T+1 day as per the OFS guidelines.

For retail investors, the offer will continue to take place during trading hours on a separate window of the stock exchanges on T+1 day, i.e, July 28.

Only retail investors will be allowed to place their bids on T+1 day. Further, those non-retail investors who chose to carry forward their unallotted bids to T+1 day will be allowed to revise their bids on T+1 day.

About 10% of the offer is reserved for allocation to retail investors subject to the receipt of valid bids.

The allocation will be made at or above the floor price on a price priority basis at multiple clearing prices, except in case of retail investors, who will have an option to bid at the cut-off price.

At 10 am, the RVNL stock was trading 3.6% lower at Rs 129.4 on BSE. However, on a year-to-date basis, the stock has surged 89%, while it has rallied 317% in the last one year.