New Delhi: The government is now close to set the ball rolling on another disinvestment plan — offloading of 15 percent stake in Rail Vikas Nigam Ltd (RVNL) through Offer for Sale (OFS), said sources who spoke to PSU Watch on the condition of anonymity. They said that an announcement in this regard can be expected soon. Earlier in October 2020, the Department of Investment and Public Asset Management (DIPAM) had released a notification to engage merchant bankers and selling brokers for the disinvestment of 15 percent stake in RVNL through offer for sale (OFS).
The authorised share capital of RVNL is Rs 3,000 crore and paid-up share capital is Rs 2,085 crore, fully subscribed by the Ministry of Railways. The paid-up equity capital of the PSU is Rs 2,085 crore as on March 31, 2020. The government holds 87.84 percent of the equity. The government had earlier disinvested 12.16 percent share of equity through Public Issue in April 2019. The face value of each equity share is Rs 10.
Profit after Tax (PAT) for the fiscal 2019-20 was Rs 789.86 crore for RVNL. As on March 31, 2020, the company had a net worth of Rs 4,499.77 crore.
"The government is also considering allotting shares to eligible and willing employees of RVNL at a discount to the issue/ discovered price (lowest cut off price) up to a maximum of certain percentage of the OFS size subsequent to the completion of the transaction under OFS. The percentage and extent shall be decided in due course," DIPAM had said in October.
RVNL, which comes under the Ministry of Railways, is engaged in engineering tasks required by the Railways. It is responsible for raising extra-budgetary resources and execution of projects relating to creation and augmentation of capacity of rail infrastructure speedily.
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