Life Insurance Corporation has acquired 8.72 per cent stake in state-owned Rail Vikas Nigam Ltd (RVNL), an organisation associated with the Indian Railways.
In an exchange filing, RVNL said the insurance company acquired 18.18 crore shares, representing 8.72 per cent stake in the company, through open market transaction.
Earlier on Tuesday, RVNL had announced that the government will sell up to 15 per cent stake in the company through an offer for sale (OFS). The floor price was fixed at Rs 27.50 per share, 9.54 per cent discount from Tuesday's closing price. The government was to divest 10 per cent equity with a greenshoe option of 5 per cent.
As per RVNL's shareholding pattern, the government held 87.84 per cent stake in the company at the end of December 2020 quarter.
On Thursday, RVNL informed the exchanges that the government has exercised oversubscription option to the extent of 1.10 crore shares or 0.53 per cent stake in addition to the base offer size in the OFS.
RVNL was established as a 100 per cent owned PSU of the Ministry of Railways on January 2003 with the objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on fast track basis.
On Thursday, shares of RVNL closed 0.18 per cent higher at Rs 27.75 on the BSE.