Rail Vikas Nigam Limited ("Company") a Miniratna (Category - I) Schedule 'A' Central Public Sector Enterprise, incorporated by the Ministry of Railways ("MoR") will be launching its initial public offering ("IPO" or the "Offer") which is scheduled to open on Friday March 29, 2019 and close on Wednesday April 03, 2019, with a price band of Rs. 17 - Rs. 19 per Equity Share of face value of Rs. 10 each of the Company (the "Equity Shares"). A discount equivalent to Rs. 0.50 per Equity Share on the Offer Price shall be offered to Retail Individual Bidders and Eligible Employee Bidders, respectively.
The IPO comprises of up to 253,457,280 Equity Shares of the Company through an Offer for Sale by the President of India, acting through the Ministry of Railways, Government of India (the "Selling Shareholder"). The Offer includes a reservation of 657,280 Equity Shares for Eligible Employees for allocation and allotment on a proportionate basis ("Employee Reservation Portion").
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR"), and in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ("SEBI ICDR Regulations"), wherein 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIB Portion"), 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.
Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, 657,280 Equity Shares shall be offered for allocation and Allotment on a proportionate basis to the Eligible Employees Bidding in the Employee Reservation Portion, conditional upon valid Bids being received from them at or above the Offer Price. All Bidders shall participate in the Offer mandatorily through the Applications Supported by Blocked Amount ("ASBA") process by providing the details of their respective ASBA Accounts (including UPI ID, if applicable) in which the corresponding Bid Amount will be blocked by the SCSBs. For details, see "Offer Procedure" on page 446 of the Red Herring Prospectus.
The Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder i.e. President of India, acting through the Ministry of Railways, Government of India.
The Offer and the Net Offer shall constitute 12.16% and 12.12% respectively, of the post Offer paid-up Equity Share capital of the Company.
Yes Securities (India) Limited, Elara Capital (India) Private Limited and IDBI Capital Markets & Securities Limited are the Book Running Lead Managers ("BRLMs") to the Offer, while Alankit Assignments Limited is the Registrar to the Offer.
The Equity Shares of Rail Vikas Nigam Limited are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.