Image Courtesy: Financial Express




Rail Vikas Nigam Limited, a Miniratna company incorporated by the Ministry of Railways, will hit Dalal Street with its initial public offering for subscription on March 29,2019.

Rail Vikas Nigam Ltd (RVNL) is engaged in the business of executing all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable stayed bridges, institution buildings etc.

The price band for public issue, which will close on April 3, 2019 and is fixed at Rs 17-19 per share.

Valuation of Rail Vikas Nigam IPO (FY2018)

Earnings Per Share (EPS): INR2.73

Price/Earnings (PE ratio): 6.23 – 6.96

Return on Net Worth (RONW): 14.52%

Net Asset Value (NAV): INR18.83 per share

A discount equivalent to 50 paise per share on the final offer price will be offered to retail investors and employees, respectively.

The IPO comprises up to 25,34,57,280 equity shares of the company through an offer for sale by the President of India, the release said, adding the offer includes a reservation of 6,57,280 equity shares for eligible employees. The company will not receive any proceeds from the offer and all proceeds will go to the Central Government.

Yes Securities (India) Ltd, Elara Capital (India) Private Ltd and IDBI Capital Markets & Securities Ltd are the book running lead managers to the offer, while Alankit Assignments Ltd is the registrar to the offer.

The offer and the net offer will constitute 12.16 percent and 12.12 percent respectively, of the post offer paid-up equity share capital of the company, the release said.

Competitors for the Company: Competitors include companies like IRCON International Ltd, RITES Limited and Konkan Railway Corporation Limited

The equity shares are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.