For Quick Alerts
For Daily Alerts

RVNL Makes Market Debut At Issue Price Of Rs 19/Share


On its first day of trade at the Indian stock exchanges, the shares of RVNL (Rail Vikas Nigam Ltd) opened flat at Rs 19. The stock was listed at Rs 19, the upper price band of its issue price. The price fluctuated to an intraday high and low of Rs 19.50 and Rs 18.65 on NSE.

RVNL Makes Market Debut At Issue Price Of Rs 19/Share

The state-owned enterprise's IPO (Initial Public Offering) worth Rs 480 crore that was open between 29 March and 3 April was subscribed 1.83 times. RVNL is a Miniratna central public sector enterprise that was incorporated by the Ministry of Railways.

It is engaged in railway projects that include setting up of new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges and institutional buildings.

However, laying of new lines and provisioning additional lines along existing tracks are the activities that bring in 75 percent of the company's revenues.

Its IPO was launched to sell 12.12 percent of the stake in the company at a price band of Rs 17-19 a share. It was the first Central Public Sector Enterprise disinvestment for the current financial year 2019-20.

The issue price values the stock at 7 times the company's earnings in the financial year 2017-18. IRCON International's issue price was valued at 9.58 times, in comparison.

Read more about: rvnl
Story first published: Thursday, April 11, 2019, 11:03 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more