RVNL shares tank 7% as two-day OFS begins, floor price set at Rs 119
RVNL OFS: The issue had received bids for 1,31,731 shares by 9.40 am, which was 0.21 per cent of the total issue size of 63,801,615 shares.
- Jul 27, 2023,
- Updated Jul 27, 2023 3:59 PM IST
Shares of Rail Vikas Nigam Ltd (RVNL) tanked 7 per cent in Thursday's trade as the two-day offer for sale (OFS) by the railways PSU kicks off. By 9.42 am, the issue had received bids for 1,31,731 shares, which was 0.21 per cent of the total issue size of 63,801,615 shares. The government is looking to offload 5.36 per cent stake in the railways PSU and has set a floor price of Rs 119, which was at a 11.42 per cent discount to RVNL’s Wednesday's closing price on BSE.
Only non-retail investors can participate in the OFS today. The stock fell 6.58 per cent to hit a low of Rs 125.50.
In a filing to BSE, RVNL said their government would sell up to 70,890,683 shares of Rail Vikas Nigam, representing 3.40 per cent of the total paid up equity share capital of the company. "Such number of equity shares as would be equivalent to up to 0.5 per cent of the offer shares may be offered to eligible employees of the company subsequent to completion of the offer, in accordance with the terms and conditions provided in the OFS Guidelines, subject to approval from the competent authority. The eligible employees may apply for Equity Shares amounting up to Rs 5,00,000," RVNL said.
The offer is opened for subscription for non-retail Investors only today and for retail investors (and for non-retail Investors who choose to carry forward their un-allotted bids) on Friday.
The OFS will have an option to additionally sell 40,866,394 shares, representing another 1.96 per cent of the total issued and paid up equity share capital -- through a separate, designated window of the BSE and the NSE, collectively representing 5.36 per cent of the total issued and paid up equity share capital of the company.
Only non-retail Investors will be allowed to place their bids on T day, i.e., July 27. While placing their bids, non-retail Investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of retail category.
Those non-retail Investors who have placed their bids on T day and have chosen to carry forward their un-allotted bids to T+1 day, shall be allowed to carry forward and also revise their bids on T+ 1 day as per the OFS Guidelines.
For retail investors (defined below) and for non-retail investors who choose to carry forward their un-allotted bids to T+1 Day, the Offer shall continue to take place during trading hours on a separate window of the Stock Exchanges on T+1 day, i.e., July 28, 2023 commencing at 9:15 a.m. and would close on the same date at 3:30 p.m. Indian Standard Time on the same date.
Also read: RVNL shares in focus as two-day offer for sale kicks off
Also read: PNB shares at Rs 45 or Rs 70? Asset quality ratios improve but elevated opex mars earnings
Shares of Rail Vikas Nigam Ltd (RVNL) tanked 7 per cent in Thursday's trade as the two-day offer for sale (OFS) by the railways PSU kicks off. By 9.42 am, the issue had received bids for 1,31,731 shares, which was 0.21 per cent of the total issue size of 63,801,615 shares. The government is looking to offload 5.36 per cent stake in the railways PSU and has set a floor price of Rs 119, which was at a 11.42 per cent discount to RVNL’s Wednesday's closing price on BSE.
Only non-retail investors can participate in the OFS today. The stock fell 6.58 per cent to hit a low of Rs 125.50.
In a filing to BSE, RVNL said their government would sell up to 70,890,683 shares of Rail Vikas Nigam, representing 3.40 per cent of the total paid up equity share capital of the company. "Such number of equity shares as would be equivalent to up to 0.5 per cent of the offer shares may be offered to eligible employees of the company subsequent to completion of the offer, in accordance with the terms and conditions provided in the OFS Guidelines, subject to approval from the competent authority. The eligible employees may apply for Equity Shares amounting up to Rs 5,00,000," RVNL said.
The offer is opened for subscription for non-retail Investors only today and for retail investors (and for non-retail Investors who choose to carry forward their un-allotted bids) on Friday.
The OFS will have an option to additionally sell 40,866,394 shares, representing another 1.96 per cent of the total issued and paid up equity share capital -- through a separate, designated window of the BSE and the NSE, collectively representing 5.36 per cent of the total issued and paid up equity share capital of the company.
Only non-retail Investors will be allowed to place their bids on T day, i.e., July 27. While placing their bids, non-retail Investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of retail category.
Those non-retail Investors who have placed their bids on T day and have chosen to carry forward their un-allotted bids to T+1 day, shall be allowed to carry forward and also revise their bids on T+ 1 day as per the OFS Guidelines.
For retail investors (defined below) and for non-retail investors who choose to carry forward their un-allotted bids to T+1 Day, the Offer shall continue to take place during trading hours on a separate window of the Stock Exchanges on T+1 day, i.e., July 28, 2023 commencing at 9:15 a.m. and would close on the same date at 3:30 p.m. Indian Standard Time on the same date.
Also read: RVNL shares in focus as two-day offer for sale kicks off
Also read: PNB shares at Rs 45 or Rs 70? Asset quality ratios improve but elevated opex mars earnings