The Rail Vikas Nigam Limited (RVNL) shares made a flat debut on Thursday over stock exchanges. Its shares debuted at ₹19 on Bombay Stock Exchange (BSE), remaining at their same initial price. Later, RVNL’s shares went higher to ₹19.55, 3% up from issue price of ₹19.
Investors bid for about 45.8 million shares of RVNL, which undertakes railway projects, or 1.8 times the 25.35 million shares on offer. RVNL initial public offer (IPO) had closed on 3rd April 2019 and the price band was ₹17-19 per share.
Retail investors subscribed about 2.5 times the shares reserved for them, while qualified institutional buyers (QIBs) portion was subscribed 1.36 times.
RVNL is the first Central Public Sector Enterprise (CPSE) disinvestment in the current fiscal, which started on April 1. The government raised about ₹480 crore by selling 12.12% stake in Rail Vikas Nigam Ltd (RVNL) with both retail and institutional investors lapping up the shares reserved for them.
In April 2017, the Cabinet Committee on Economic Affairs had approved listing of five railway companies – IRCON international, Rail Vikas Nigam, Indian Railway Finance Corp Ltd, RITES Ltd and Indian Railway Catering and Tourism Corp. Out of these five, IRCON International and RITES was listed in 2018-19.
Electric wires and cables maker Polycab India Ltd.’s initial oublic offering (IPO) to raise ₹1,346 crore was subscribed more than 50 times. Metropolis Healthcare Ltd.’sinitial public offering (IPO) to raise as much as ₹1,204 crore was also over-subscribed.