Shares of Rail Vikas Nigam, an organisation associated with Indian Railways, fell over 7 per cent in opening trade on the Bombay Stock Exchange on government's stake sale bid announced on Tuesday. The Centre has proposed to sell 15 per cent stake in Rail Vikas Nigam via offer for sale to raise around Rs 755 crore. The floor price has fixed at Rs 27.50 a share, 9.54 per cent discount from Tuesday's closing price.
Reacting to the news, Rail Vikas Nigam share price declined as much as 7.56 per cent to hit low of Rs 28.10 on the BSE. The stock of state-owned firm opened lower at Rs 28.35 against previous close price of Rs 30.40. The market cap of the company dropped to Rs 5,890.18 crore. Meanwhile, the BSE benchmark Sensex was trading at 49,822, down 222 points or 0.46 per cent.
In a similar trend, shares of Rail Vikas Nigam were trading lower by 7.39 per cent at Rs 28.20 against previous close price of Rs 30.45. The stock hit a high and low of Rs 28.40 and Rs 28.15, respectively, in opening trade.
The offer for sale (OFS0 will open on Wednesday for non-retail investors, and on Thursday for retail investors.
"Offer for sale in Rail Vikas Nigam opens tomorrow for Non Retail investors. Retail investors can bid on Thursday. Govt. would divest 10 per cent equity with a 5 per cent Green Shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.
Rail Vikas Nigam 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.