The Miniratna central public sector enterprise, incorporated by the Ministry of Railways, is offering up to 2,53,457,280 shares in the price band of Rs 17-19 per share. The issue will close on April 3.
Of these, 6,57,280 shares will be reserved for employees.
The offer and the net offer shall constitute 12.16 per cent and 12.12 per cent, respectively, of the post offer paid-up equity share capital of the company.
A discount of Rs 0.50 per share each on the offer price is marked for retail investors and employees.
RVNL was incorporated as a project executing agency working for and on behalf of the Ministry of Railways, with an aim to undertake rail project development, mobilisation of financial resources and implementation of rail projects pertaining to strengthening of golden quadrilateral and port connectivity and raising of extra-budgetary resources for project execution.
However, in 2004, the ministry decided that the company should restrict itself to project execution.
RVNL is 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 and the like.
The firm has an order book of Rs 7,75,042.80 million as on December-end 2018, which includes 102 ongoing projects.
RVNL’s revenue from operations has increased at a CAGR of 29.36 per cent to Rs 75,973.58 million in 2017-18 compared with 2015-16. Net profit too has increased at a CAGR of 15.20 per cent to Rs 5,699.20 million.
