RVNL shares extend decline after OFS update; retail investors can bid today

Shares of Rail Vikas Nigam Limited (RVNL) extended its recent decline in Friday's trade as the government decides to sell more shares in the ongoing offer for sale (OFS) by exercising the oversubscription option. The two-day OFS saw a strong start, as the quota for non-retail investors got 2.73 times subscription on the Day 1 of the bidding process. Retail investors are eligible to participate in the OFS today.

Early data suggests, retail investors bade for 52,859 shares, which was 0.75 per cent of the quota reserved. Non-retail investors also carried forward their un-allotted bids to Friday's session. The quota was subscribed 16.07 times, with the total OFS receiving 16.08 times subscription.

Yet, RVNL shares fell 4.08 per cent to hit a low of Rs 121 on BSE. The indicative price stood at Rs 121.88 per share for non-retail bidders against a floor price of Rs 119 per share. The floor price was set at a 12 per cent discount to Wednesday's price. RVNL shares were down 6 per cent in the previous session.

On Thursday, RVNL said it would exercise the oversubscription option to the extent of 40,866,394 equity shares, representing 1.96 per cent of the total paid-up equity share capital of the company, in addition to 70,890,683 equity shares of the company that represented 3.40 per cent of the total paid-up equity share capital and formed a part of the base offer size.

Accordingly, the total offer size will be up to 1,11,757,077 shares, representing 5.36 per cent of the total paid up equity share capital of the company.

Those non-retail Investors who placed their bids on T day and have chosen to carry forward their un-allotted bids to T+1 day, were allowed to carry forward and also revise their bids on T+ 1 day as per the OFS Guidelines.

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