New Delhi: Rail Vikas Nigam Limited, a Miniratna company under the aegis of Ministry of Railways, will open its initial public offering for subscription on March 29. IPO will close on April 3, 2019. The price band for the public issue has been fixed at Rs 17-19 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.
All proceeds will go to the Government
It has been declared that the company will not receive any proceeds from the offer and all proceeds will go to the Central Government. 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 press statement said.
The equity shares are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.
What is an IPO?
Acronym IPO stands for the initial public offering. It is the very first sale of stock issued by a company to the public. Prior to an IPO the company is considered private, like in case of Rail Vikas Nigam limited to the 100 percent government shareholding. with a relatively small number of shareholders made up primarily of early investors (such as the founders, their families, and friends, or government in the present case) and professional investors (such as venture capitalists or angel investors). The public, on the other hand, consists of everybody else.