Rail Vikas Nigam shares plunge over 9% after Government of India decides to offload stake

The share price of Rail Vikas Nigam Ltd (RVNL) plunged over 9 percent after the government decided to sell its 10 percent stake in the company via offer for sale (OFS). The shares of the company were trading at Rs 27.65, down by 9.05 percent or 2.75 points at 3:30 pm on the BSE. On the National Stock Exchange (NSE) the shares declined by 9.20 percent or 2.80 points to trade at Rs 27.65 at 3:30 pm. Around 20,85,02,010 equity shares of Rail Vikas Nigam will be sold through OFS, the government had said earlier. In case of oversubscription, additional 10,42,51,005 equity shares or 5 percent will be sold. According to the information available Rs 27.50 per share has been fixed as the floor price for the offer. March 25 is the last day for the offer for sale. The information regarding the offer for sale was provided by the Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey, who tweeted: “Offer for Sale in RVNL opens tomorrow (March 24) for Non Retail investors. Retail investors can bid on Thursday. The government would divest 10 percent equity with a 5 percent Green Shoe option."

Offer for Sale in RVNL opens tomorrow for Non Retail investors. Retail investors can bid on Thursday. Govt. would divest 10% equity with a 5% Green Shoe option. pic.twitter.com/L253JVTIGW

— Secretary, DIPAM (@SecyDIPAM) March 23, 2021

 Shares of Rail Vikas Nigam Limited hit an intraday low of Rs 27.65 while intraday high is Rs 28.40.