Rail Vikas Nigam tumbles over 8 per cent on GOI stake sale plan

The shares of Rail Vikas Nigam fell over 8 per cent intraday after the government said that it would dilute a 15 per cent stake in the company through an offer for sale (OFS) that opens today. 

The government will sell 20,85,02,010 equity shares or 10 per cent of the total paid-up capital in the company via OFS. If the issue is oversubscribed, the GOI plans to sell another 10,42,51,005 equity shares or a 5 per cent stake. The floor price for the offer has been set at Rs 27.50 per share. 

The issue, which opens today for non-retail investors and on Thursday for retail investors, will raise nearly Rs 750 crore. 

For FY21, the Finance Ministry has reduced its disinvestment target to Rs 32,000 crore from Rs 2,10,000 crore due to the disruptions of the pandemic crisis. The Department of Investment & Public Asset Management (DIPAM) has so far raised up to Rs 31,006 crore with its latest exit from Tata Communications. 

At 1.56 pm on Wednesday, the shares of Rail Vikas Nigam were trading at Rs 27.80, down by 8.55 per cent or Rs 2.60 per share, against a 1.20 per cent decline in the benchmark index. The 52-week high of the company is recorded at Rs 35.60 while its 52-week low is Rs 10.20 on BSE.