Rail Vikas Nigam IPO – Review, Allotment Status, Subscription, Date, Price & more

Last Updated Date: Aug 23, 2022

Rail Vikas Nigam IPO is the latest IPO filed with SEBI. In this Article, we will have a detailed review of Rail Vikas Nigam IPO & we will go through in detail about their RVNL IPO Object, Allotment Status, Issue Details, Company background & Financials, RVNL IPO release date, IPO price band, IPO grey market pricing & more.

Issue Price of this IPO is Rs 17 – Rs 19 . Check the Live Share Price here Rail Vikas Nigam Share Price
To track the performance of this IPO, click on this link – IPO Performance

Rail Vikas Nigam IPO / RVNL IPO Review & Ratings

Ratings & Review
Criteria	Ratings
Industry Sentiments	8.5/10
Industry Ranking	8.7/10
Company Background	8.6/10
Company Reputation	8.7/10
Competitive Edge	8.8/10
Financial Statements	8.9/10
Popularity Index	8.8/10
Promoters Reputation	8.6/10
Retail Appetite	8.8/10
Top Brokers Review	8.8/10
Overall Ratings	8.7/10
Star Ratings	★★★★★

Summary of Rail Vikas Nigam IPO

rail vikas nigam ipo RVNL IPO Rail Vikas Nigam Limited is a wholly owned government company, a Miniratna (Category – I) Schedule ‘A’ Central Public Sector Enterprise, incorporated by the Ministry of Railways (“MoR”) under the Companies Act, 1956 on January 24, 2003, as a project executing agency working for and on behalf of MoR. RVNL net profit in Financial year FY 2015, 2016, 2017 is Rs 3,368.49 million, Rs 4,294.34 million, Rs 4,434.87 million and Rs 2,359.35 million, respectively.

The PSU was incorporated with an objective to undertake rail project development, mobilization of financial resources and implementation of rail projects pertaining to strengthening of golden quadrilateral and port connectivity and raising of extra- budgetary resources for project execution.

Rail Vikas Nigam Limited has hired 3 Lead Managers to perform all activities related to IPO. These Lead Managers are: Yes Securities (India) Limited, Elara Capital (India) Private Limited, IDBI Capital Markets & Securities Limited. The PSU company has also hired Alankit Assignments Limited as their registrar to the offer.

RVNL is planning to go out with 20.85 crores equity shares in the market, this is close to 10% of the government’s stake. This is supposedly one of the largest IPO of 2018. The shares of RVNL IPO will be listed in both BSE & NSE.

Open Free* Demat A/C Now! Fill the details below

Rail Vikas Nigam IPO Date (RVNL IPO Date)

The opening and the closing date of RVNL IPO is from Mar 29, 2019 – Apr 3, 2019.

Rail Vikas Nigam IPO Subscription

Day / Date	QIB	NII	RII	Employee	Total Subscription
1st Day – Mar 29	–	0.02x	0.24x	0.16x	0.09x
2nd Day – April 1	–	0.04x	0.48x	0.48x	0.18x
3rd Day – April 2	0.03x	0.15x	1.25x	0.90x	0.48x
4th Day – April 3	1.36x	0.80x	2.92x	2.11x	1.82x
Shares Offered or Net Issue	126,400,000	37,920,000	88,480,000	657,280	253,457,280

RVNL IPO Subscription will be released post issue of IPO.

BSE Bid Details
NSE Bid Details

Rail Vikas Nigam IPO Allotment Status

The Allotment status of the RVNL IPO for every individual will be posted after 3-4 weeks of the IPO issue. Here, you can find the Allotment Status of this IPO.

Basis of Allotment Finalization	8-Apr-19
Refunds Initiation	9-Apr-19
Credit of Shares to Demat Account	9-Apr-19
Share Listing Date	11-Apr-19

Rail Vikas Nigam IPO Price Band

The price band of RVNL IPO is Rs 17 – Rs 19 Per Equity Share.

Rail Vikas Nigam IPO Issue Size (RVNL IPO)

The RVNL IPO Issue size is 253,457,280 Equity Shares of face value Rs 10, aggregating up to Rs 481.57 Crores.

Rail Vikas Nigam IPO Equity Share Offerings

The PSU company has released in the red herring prospectus that they will offer around 20.85 crore equity shares in the market. The Min Order Quantity or Market Lot is 780 Shares. It is Listed on both BSE and NSE.

Retail Portion: 35%
Discount: Rs 0.50 for Retail & Employees

Rail Vikas Nigam Limited – Company Overview

Rail Vikas Nigam Limited is a wholly owned government company, a Mini Ratna incorporated by the Ministry of Railways (“MoR”). They were incorporated with an objective to undertake rail project development, mobilization of financial resources and implementation of rail projects.

RVNL is in the business of executing all types of railway projects including new lines, doubling, gauge conversion,
railway electrification, metro projects, workshops, major bridges, construction of cable stayed bridges, institution
buildings etc.

Since their inception in 2003, MoR has transferred 172 projects of which 166 projects are sanctioned for
execution. Out of these, 60 projects have been fully completed totalling to Rs.167,777.00 million and the balance
are ongoing. The PSU have an order book of Rs.686,836.20 million as on February 28, 2018 which includes 106 ongoing projects.

Key Members of the Company

Satish Chandra Agnihotri (Chairman & MD)
Gita Mishra (Director)
Vijay Anand (Director)

Competitive Strengths of the Company

Expertise in undertaking all stages of project development and execution from conceptualization to commissioning
Established financial track record
Undertaken diverse categories of projects with an asset light model
Empowerment by MoR for sanctioning project estimates and award of contracts
Standardization of operating procedures resulting in faster decision making
Experienced Board and Key Managerial Personnel and skilfully trained workforce

Strategies of the Company

To leverage the position as an executing agency in MoR’s investment plan for ramping of rail infrastructure
Securing of rail infrastructure projects from other ministries/ PSUs
Focus on high value projects
Implementation of railway workshops and factory projects

Rail Vikas Nigam Limited – Financial Statements

Let us go through the financial statement of the PSU company

Amount (in INR & Millions)
	30-Sep-18	31-Mar-18	31-Mar-17	31-Mar-16	31-Mar-15 (Proforma)
Total Assets	87,324.10	85,685.46	88,595.72	222,156.75	161,353.72
Total Expense	34,846.49	72,580.62	56,737.89	43,502.52	30,213.39
Total Revenue	36,228.82	75,973.58	59,151.06	45,398.54	31,465.35
Profit After Tax	2,536.20	5,699.20	4,434.62	4,294.34	3,368.49

Earnings per Equity Shares of RVNL IPO

Earning per Equity Share (in INR)
	Mar’17	Mar’16	Mar’15	Mar’14	Mar’13
Basic	2.13	2.06	1.62	0.78	0.67
Diluted	2.13	2.06	1.62	0.78	0.67

The company has seen massive growth in its PAT & Revenue in last 5 years. So, it is expected to give high returns post IPO launch. We recommend to subscribe to this IPO.

Rail Vikas Nigam Limited or RVNL IPO Promoters

The Promoter is the President of India acting through the Ministry of Railways. The Promoter, along with its nominees, currently hold 100% of the pre-Offer paid-up Equity Share capital of the Company. After this Offer, the Promoter shall hold 87.84% of the post-Offer paid-up equity share capital of the Company.

Rail Vikas Nigam IPO Offer Details or RVNL IPO Issue Details

Offer of Equity Shares	253,457,280 Equity Shares aggregating to Rs.[●] million
Of which:
Employee Reservation Portion	Up to 657,280 Equity Shares aggregating to [●] million
Accordingly,
Net Offer	252,800,000 Equity Shares aggregating to Rs.[●] million

of which:
A) QIB Portion	126,400,000 Equity Shares
of which:
Mutual Fund Portion	6,320,000 Equity Shares
Balance for all QIBs including Mutual Funds	120,080,000 Equity Shares
B) Non-Institutional Portion	Not less than 37,920,000 Equity Shares
C) Retail Portion	Not less than 88,480,000 Equity Shares
Pre and post Offer Equity Shares
Equity Shares outstanding prior to the Offer	2,085,020,100
Equity Shares outstanding after the Offer	2,085,020,100

Rail Vikas Nigam IPO Issue Object

Following are the objects of the RVNL IPO issue:

To carry out the disinvestment of [●] Equity Shares held by the Selling Shareholder in the Company, equivalent to 10% of the Company’s pre-Offer paid up Equity Share capital of the Company as part of the Net Offer, and such Equity Shares that may be reserved for Employee Reservation Portion, if any, subject to necessary approval from GoI
To achieve the benefits of listing the Equity Shares on the Stock Exchanges. The Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholder.

Rail Vikas Nigam IPO – Basis of the offer

The Offer Price RVNL IPO will be determined by the Company and Selling Shareholder in consultation with the BRLMs, on the basis of assessment of market demand for the Equity Shares through the Book Building Process and on the basis of quantitative and qualitative factors as described below.

Qualitative Factors

Some of the qualitative factors which form the basis for computing the Offer Price are:

Expertise in undertaking all stages of project development and execution from conceptualisation to
commissioning;
Established financial track record
Undertaken diverse categories of projects with an asset light model
Empowerment by MoR for sanctioning project estimates and award of contracts
Standardization of operating procedures resulting in faster decision making
Experienced Board and Key Managerial Personnel and skillfully trained workforce

Quantitative Factors

Some of the quantitative factors which may form basis for computing the Offer Price are as follows:

Basic and Diluted Earnings per Share (“EPS”) : Last 3 years weighted avg. is INR 2.02.
Price/ Earning (“P/E”) ratio in relation to the Offer Price of Rs.[●] per Equity Share
Return on Net Worth (“RoNW”): For 3 Years is 10.89%
Minimum Return on Increased Net Worth needed after the Offer for maintaining Pre-Offer EPS
Net Asset Value (“NAV”) per Equity Share for Dec 2017 is Rs.14.79.

Rail Vikas Nigam IPO Lead Managers

Lead Managers

Yes Securities (India) Limited

Elara Capital (India) Private Limited

IDBI Capital Markets & Securities Limited

RVNL IPO Registrar to the Offer

Registrar to the Offer

ALANKIT ASSIGNMENTS LIMITED

Address:Alankit Heights, 1E/13 Jhandewalan Extension, New Delhi –110055. Telephone:+9111 4254 1234/91 11 2354 1234 Facsimile:+91114154 3474Email:rvnl_ipo@alankit.com, Website:www.alankit.com

Investor Grievance ID:rvnl_igr@alankit.com, Contact Person: Pankaj Goenka /Bojimon

KHSEBI Registration Number:INR000002532

RVNL IPO Review by Top 10 Stock Brokers

Here are the review of Rail Vikas IPO by top 10 stock brokers.

Top Stock Brokers Review	Company Reputation	Competitive Edge	Financial Statement	Popularity Index	Promoters Reputation
Angel Broking	8.5/10	8.9/10	8.5/10	8.9/10	8.9/10
Sharekhan	8.6/10	8.4/10	8.6/10	8.5/10	8.6/10
Kotak Securities	8.5/10	8.5/10	8.9/10	8.9/10	8.8/10
ICICI Direct	8.8/10	8.8/10	8.7/10	8.5/10	8.9/10
IIFL	8.5/10	8.6/10	8.8/10	8.0/10	8.5/10
Edelweiss	8.5/10	8.5/10	8.2/10	8.8/10	8.6/10
Zerodha	8.9/10	8.9/10	8.5/10	8.9/10	8.0/10
5Paisa	8.9/10	8.5/10	8.9/10	8.2/10	8.2/10
Karvy	8.5/10	8.8/10	8.6/10	8.9/10	8.9/10
Motilal Oswal	8.9/10	8.9/10	8.6/10	8.8/10	8.6/10