Government To Sell 5.36% Stake In Rail Vikas Nigam Via Offer For Sale

The government plans to sell 5.36% of its stake in Rail Vikas Nigam Ltd. through an offer for sale starting Thursday.

The sale will be open to non-retail and retail investors on July 27 and July 28, respectively, the secretary for the Department of Investment and Public Asset Management said in a Twitter post.

The OFS will be conducted at a floor price of Rs 119 per share—an 8% discount to its closing price of Rs 129.35 on Wednesday.

More than 7.08 crore equity shares of the company, of face value of Rs 10 each, will be sold. This represents 3.4% of the total paid-up equity share capital.

The government will retain the green-shoe option of selling another 1.96% stake, according to an exchange filing.

The government—through the President of India—owns 78.2% of RVNL, with the rest being held by the public, according to the shareholding pattern as of the quarter-ended June.