State owned Rail Vikas Nigam Limited (RVNL) will be commencing its Initial Public offering (IPO) on Friday. The government incorporated Miniratna will offer total 25,34,57,280 equity shares at a price width of ₹17-19.
Railway Ministry controlled RVNL will open IPO to raise about ₹481.6 crore. The IPO will conclude on 3rd April.
Out of total 25,34,57,280 equity shares 6,57,280 will be reserved for the employees. The offer and the net offer shall constitute 12.16% and 12.12%, respectively, of the post offer paid-up equity share capital of the company.
Also, a discount of ₹0.50 per share each on the offer price is marked for retail investors and employees.
Although, through IPO the company will not receive any profit all the money raised will go to central government.
RVNL was incorporated by the central government as a project executing agency working under the railway ministry with an aim to undertake rail project development, mobilization of financial resources and implementation of rail projects.