IPO Update: Rail Vikas Nigam oversubscribed

State-owned rail infrastructure financier Rail Vikas Nigam Limited (RVNL) is slated to be the first successful Initial Public Offering (IPO) of FY2020. At 14:15 hours on Wednesday, the IPO was oversubscribed with enthusiastic participation from retail investors.

The price band of the IPO is Rs. 17 to Rs. 19 per share of face value Rs. 10. The bid lot size for the issue is 780 equity shares. The IPO close at 5:00 pm on Wednesday, April 4, 2019.

Rail Vikas Nigam Limited (RVNL) will raise approximately Rs. 480 crore for the selling promoter the Government of India. RVNL is a miniratna Central Public Sector Enterprise established in 2003. The company acts as a financial executing agency for the Ministry of Railways (MoR).

As of 14:45 hours, the issue was subscribed 1.10 times. The cumulative bid received for the IPO were 27,90,32,520, of which a total of 14,91,92,160 bids were received at cut-off price. The Qualified Institutional Buyers (QIBs) portion of IPO was subscribed the least at 0.43 times, while the Employees portion was subscribed 1.11 times, followed by Retail Individual Investors (RIIs) portion at 0.79 times.