If you too have missed out on buying shares of the Indian Railway and Tourism Corporation (IRCTC), the government rail company, then you have a chance to come soon. Government of India is going to disinvest in two more rail companies after IRCTC. The initial public offer (IPO) is going to come in the stock market soon to sell the stake.

IPO government of this company will plan to sell up to 15 percent stake in Rail Vikas Nigam Limited (RVNL). To fulfill this share sale offer systematically, the government has sought applications from the merchant banker. The Department of Investment and Public Asset Management (Dipam) has issued a notification in this regard and called for applications.

According to the notification, the government intends to disinvestment 15 percent of its 87.84 percent shareholding in the paid-up capital shares of RVNL. This sale of shares will be done through a sale offer in the stock markets.

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Apart from this, he will have to do roadshows, market surveys and meetings with investors domestically and internationally. On BSE, RVNL shares closed at Rs 18.80, up 0.53 percent on Friday. At the current rate, the sale of 15 percent stake will bring Rs 580 crore to the government exchequer.

The government will appoint 3 merchant bankers for its management. The merchant banker will have to bear the responsibility of advising the government on time and setting procedures for the sale offer, so that the government gets the best returns.

RailTel also applied with SEBI Public RailTel Corporation of India Ltd (RailTel Corporation of India Ltd) has applied to Sebi for IPO. The company plans to raise Rs 700 crore from this offer. According to the documents filed with the market regulator SEBI, the government will offer the sale of its 8.66 crore shares in the company under the IPO.

The PSU company has submitted the draft Red Herring Prospects (DRHP) on 29 September. Railtel is a Miniratna company in category one. The company provides telecom networks and infra services. The company has separate system integrated services. It has exclusive rights on the optical fiber network laid along the railway line.

 

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