Hopeful Rail Vikas Nigam Will Sail Through Without Bailouts, Says Disinvestment Official
PTI, Mar 29, 2019, 11:21 AM IST
Mumbai: Joint secretary at the divestment department NV Reddy Tuesday expressed hope that the forthcoming Rs 481-crore public issue of state-owned Rail Vikas Nigam (RVNL) will garner good response and will not have to be bailed by banks and LIC.
The Miniratna company under the railway ministry is offering up to 2,53,457,280 shares at a price band of Rs 17-19 in an IPO that hits the markets on March 29.
“This IPO is attractively priced and we feel we will be able to attract small investors,” Reddy told reporters.
Asked whether they are is seeking support from LIC and state-runs banks to bailout the IPO in case it does fails to sail through, Reddy said, “we cannot depend on PSUs as their boards take investment decisions independently. We don’t want to depend on any of them beyond a point because it’s their decision to invest and not to invest.”
It can be noted that in FY18, LIC and state-run banks coughed up as much as Rs 25,000 crore in the total divestment proceeds of Rs 1 trillion, he said.
“This year, we have so far achieved Rs 85,000 crore in divestment proceeds and of this, only Rs 5,000 crore have come from LIC, banks and state-run insurers, which is very low
compared to the previous year” Reddy added.
It may be recalled that the government had to extend closing time for the recent Rs 226-crore IPO by state-run MSTC due to poor demand.
RVNL has an order book of over Rs 77,504 crore as of December 2018, which includes 102 ongoing projects. Its revenue from operations has been growing at an annualized 29.36 percent at Rs 7,597.3 crore in the year to March 2018 since FY16, while net profit has been growing at 15.20 percent to Rs 569.9 crore during the same period.
Elara Capital, IDBI Capital Markets and Yes Securities are the lead managers to the offer, while Alankit Assignments is the registrar.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
EC updates Maharashtra voter list; Shahada seat has 3 candidates in fray, Nanded North 33
Heroin worth Rs 3.5 crore recovered in police raid in Delhi, 2 arrested
Treated Muslims like fuel for ‘lantern’: Prashant Kishor targets Lalu, asks upper castes to stay away from Nitish
Wayanad Bypoll: Politics in country, Kerala not genuinely working for people, says Priyanka Gandhi
Malegaon blast trial: Court issues bailable warrant against Pragya Thakur
MUST WATCH
Latest Additions
Mangaluru: Proposal for permits on eight new bus routes
Kambala – PETA PIL: Karnataka HC adjourns hearing to Nov 12
EC updates Maharashtra voter list; Shahada seat has 3 candidates in fray, Nanded North 33
Millions cast vote in historic US presidential election
Wine Merchants’ Association alleges corruption in excise dept, Minister Thimmapur refutes charge
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.