RVNL Wins Order Worth Rs. 1088 Crore: Check OFS Details Here
Rail Vikas Nigam Ltd (RVNL) has been awarded a prestigious project worth Rs. 1,088 crore by Haryana Rail Infrastructure Development Corporation (HRIDC). The Letter of Award (LoA) is for “Package No. C-4: Composite Contract Package in connection with New BG railway line of HORC project.” The estimated project cost is Rs. 1,088.49 crore, and it is scheduled to be completed in 1,460 days (4 years). On the trading front, RVNL’s stock witnessed a 3.96 percent dip, closing at Rs. 121.15.
To meet the overwhelming demand in the ongoing offer for sale (OFS), RVNL has decided to sell additional shares by exercising the oversubscription option. On the first day of the bidding process, non-retail investors subscribed to 2.73 times the allotted quota. Today, retail investors also get the opportunity to participate, with the OFS scheduled to close at 3:30 pm.
RVNL’s oversubscription option includes the sale of 40,866,394 equity shares, constituting 1.96 percent of the total paid-up equity share capital, and 70,890,683 equity shares, amounting to 3.40 percent of the total paid-up equity share capital, which were part of the base offer size. This brings the total offer size to 1,11,757,077 shares, equivalent to 5.36 percent of the total paid-up equity share capital.
In another development, RVNL has established its wholly-owned subsidiary, ‘Kinet Railway Solutions Ltd.’ The Share Purchase Agreement indicates that RVNL holds a 25 percent stake, while joint stock company Metrowagonmash and Locomotive Electronic Systems possess 70 percent and 5 percent stakes, respectively.
From a technical standpoint, RVNL’s stock currently trades higher than the 100-day and 200-day moving averages but lower than the 5-day, 20-day, and 50-day moving averages. The counter’s 14-day relative strength index (RSI) stands at 45.94. An RSI below 30 is considered oversold, while a value above 70 indicates overbought conditions. The company’s stock has a price-to-earnings (P/E) ratio of 20.74 and a price-to-book (P/B) value of 4.27.
According to data from Trendlyne, the scrip has an average target price of Rs. 130, suggesting a potential upside of 7 percent. RVNL exhibits low volatility with a one-year beta of 0.72.
About RVNL:
Rail Vikas Nigam Limited (RVNL) is a public sector undertaking in India that serves as the construction division of the Ministry of Railways. It is responsible for the implementation of projects and the development of transportation infrastructure in the railway sector.
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