Shares of Rail Vikas Nigam Ltd (RVNL) rallied nearly 5 per cent in opening deals on Friday after Life Insurance Corporation acquired 8.72 per cent stake in state-owned company. The insurance major has acquired 18.18 crore shares, representing 8.72 per cent stake in the company, through open market transaction.
Boosted by the development, Rail Vikas Nigam share price gained as much as 4.86 per cent in opening trade to Rs 29.10 apiece on the Bombay Stock Exchange. The stock of rail infrastructure developer opened higher at Rs 28.50 against previous close price of Rs 27.75. The market cap of the company surged to Rs 5,963.16 crore. Meanwhile, the BSE Sensex was trading 457 points or 0.94 per cent higher at 48,897.
On the National Stock Exchange, shares of Rail Vikas Nigam were trading 3.25 per cent higher at Rs 28.60 against previous close price of Rs 27.70. The stock hit high and low of Rs 29.10 and Rs 28.2, respectively,
On Thursday, Rail Vikas Nigam shares closed 0.18 per cent higher at Rs 27.75 on the BSE after the company's offer for sale (OFS) concluded. Through the OFS, the government of India proposed to sell 10 per cent equity in Rail Vikas Nigam with a 5 per cent green shoe option to raise around Rs 755 crore. The floor price was fixed at Rs 27.50 a share, 9.54 per cent discount from Tuesday's closing price. It opened on Wednesday for non-retail investors, and on Thursday for retail investors.
At the end of December quarter of 2020, the government of India owned 87.84 per cent stake in Rail Vikas Nigam, an organisation associated with Indian Railways. It 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.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today