IPO Update: Rail Vikas IPO subscribed by 20 per cent on Day 2

The IPO of Rail Vikas Nigam (RVNL) was subscribed 18 per cent on Monday. RVNL operates under the Ministry of Railways.

The issue received bids of 4.48 crore equity shares against an offer size of 25.34 crore shares. RVNL had launched its IPO for subscription at a price band of Rs. 17-19 per share on March 29.

The IPO witnessed a 3 per cent subscription among non-institutional investors and 49 per cent among retail investors. The qualified institutional buyer's portion has not been subscribed until now.

The offer for sale by the Government of India is expected to yield Rs. 481 crore at the upper end of the price band. The issue includes a reservation for eligible employees of 6, 57,280 equity shares. The issue is set to close on April 3, 2019. Eligible employee bidders along with retail investors will get shares at a discount of 50 paise per share on the final issue price.

RVNL is a wholly-owned government company and a miniratna central public sector enterprise.