IPO Update: Gear up for Rail Vikas Nigam IPO

Another railways organization, the Rail Vikas Nigam Limited, is entering the equity market this week with its Initial public offering (IPO) to raise approximately Rs. 480 crore. The IPO opens on Friday, March 29.

IPO is consists of 25,34,57,280 equity shares of face value Rs. 10 each through a 100 per cent book building process. The price band for the issue is Rs. 17 to 19 per share with a minimum bid size of 780 equity shares. The issue is open for subscription from March 29, 2019 to April 3, 2019.

Rail Vikas Nigam Limited (RVNL) is a miniratna Central Public Sector Enterprise (CPSE) established in 2003. The company is a project executing agency for the Ministry of Railways (MoR). The company undertakes rail development projects with a key role as a financial resource mobiliser and forms project-specific SPVs with private players.

The company's main focus is the implementation of rail projects alongside the golden quadrilateral network of highways and ports for providing seamless connectivity infrastructure in the country. The company engages in the execution of railway projects including railway electrification, adding new lines, doubling, gauge conversion, metro projects, major bridges, workshops and institutional buildings. The company had an order book of approximately Rs. 77,000 crore, as on December 31, 2018, with 102 ongoing projects. In FY2018, RVNL completed a total of 885.50 rail km (rkm) of project, including 315.20 rkm of doubling and 425 rkm of railway electrification.