On the last day, Rail Vikas Nigam (RVNL) IPO received bids for Rs. 46.33 crore shares against the offer for sale of Rs. 25.34 crores by the Government of India. The IPO was subscribed 1.83 times on the last day i.e. April 3, 2019. The issue was open for subscription from 29th March till April 3, 2019.
The Qualified Institutional Buyers (QIB) category was subscribed by 1.36 times on the last day. The Non-Institutional Investors(NII) category was subscribed by 80%. In addition to this, the Retail Institutional bids were subscribed by 2.93 times. The Employee subscription was 2.12 times the issue.
The IPO issue included 6,57,280 equity shares reserved for Employees. Further, the Employees, as well as retail investors, were eligible to subscribe shares at a discount of Rs 0.50 paise per share.
On day 1 of the issue, the RVNL IPO was subscribed by 9%. Followed by 19% on Day 2 of the bidding process.
Day 3 of Subscription:
On Day 3, the issue was subscribed by 48%. The company received bids for 12,04,48,350 equity shares of the aggregate issue size of 25,34,57,280 shares. Further, the Qualified Institutional Buyers (QIB) subscribed 3% shares of the company on day 3. Whereas the non-institutional investors made subscription bids of 15% on day 3. Moreover, the retail investors witnessed a subscription of 1.24 times.
The issue was at a price band of Rs. 17 – Rs. 19 with an issue size of 25,34,57,280 shares aggregating to 12.12% of paid-up equity share capital of the company. At an upper price band of Rs. 19 the issue size aggregates to Rs. 481 crores raised by the Government of India via the Ministry of Railway (MOR). Furthermore, the company in the last 4 finals from FY15 to FY18 has reported revenue growth of 33.7%. At upper price band, the company will be trading at 6.96x earning. whereas, RVNL is priced at a price to book value of 0.009x.
RVNL is a wholly owned government Entity incorporated by the Ministry of Railways. It is a Miniratna (Category-I) company. The company acts as a Project execution agency on behalf of the Ministry of Railways (MOR).