Rail Vikas Nigam share sale subscribed 63%
2 min read
The Rs 860-crore share sale in Rail Vikas Nigam by the Centre observed muted response from buyers on Wednesday. Out of whole of 312.7 million shares set on the block, institutional buyers subscribed to only 198 million shares in the offer you for sale (OFS), details presented by inventory exchanges showed.


Marketplace players mentioned the volatility in the secondary marketplace impacted demand from customers. Shares of Rail Vikas dropped 9.2 for every cent to end at Rs 27.65. The ground price tag for the OFS was set at Rs 27.5.





Centre presently holds 87.84 for every cent stake in Rail Vikas, the project executing company for the Indian Railways. Had the OFS been fully subscribed, Centre would have been able to pare its keeping by 15 for each cent.


The ultimate proceeds for the share sale will rely on the demand from customers in the retail investor segment. About 31.3 million shares intended for retail buyers will be auctioned on Thursday.


According to the DIPAM site, the centre has marketed minority stakes in 10 stated PSUs so considerably this financial yr to mobilise Rs 27,070 crore.


Shares of Rail Vikas have acquired 2.7 moments in the earlier a single yr. The business experienced appear out with an IPO in March 2019. The stock was priced at Rs 19 in the IPO.

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