OFS For RVNL: The company informed the stock market that the proposed offer for sale comprises 70,890,683 equity shares of RVNL. This is equal to 3.40 percent stake. There is also an option to sell an additional 40,866,394 equity shares. This is 1.96 per cent of the total issued and paid-up equity share capital.
Rail Vikas Nigam Ltd Share Price: Work is being done on the privatization of two companies by the Modi government. Government has decided to sell its 5.36 percent stake in Rail Vikas Nigam Limited (RVNL) through Offer for Sale (OFS).
With this, the government exchequer is expected to get Rs 1,329.90 crore. Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), wrote on Twitter, ‘Offer for sale for non-retail investors in RVNL begins today.
Retail investors will be able to bid from Friday
Retail investors can bid for this from Friday. The government has earmarked 5.36 per cent stake in the offer for sale. Disinvestment of additional 1.96 percent stake has also been included in case of higher bids. The company informed the stock market that the proposed offer for sale comprises 70,890,683 equity shares of RVNL.
This is equal to 3.40 percent stake. There is also an option to sell an additional 40,866,394 equity shares. This is 1.96 per cent of the total issued and paid-up equity share capital.
A total of 11.17 crore shares will be offered, which is expected to fetch Rs 1,329.90 crore to the exchequer at a floor price of Rs 119 per share . On the other hand, the Modi government is also preparing to privatize BEML through disinvestment. Right now the process of privatization
is stalled due to delay in final approval to complete the transfer of land from the local state government. Reuters report claimed that the government is considering reducing its 26 percent stake in BEML.
After the completion of the process of transfer of land from the state government, the work of privatization will be completed. At present, the government has a total stake of 54%. With this sale,
the government can get around $ 232.5 million (Rs 1900 crore) at the current share price. The plan to raise Rs 510 billion in disinvestment proceeds in the financial year 2024 will get a boost.
