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

Rail Vikas Nigam IPO is the latest IPO filed with SEBI. This IPO was drafted on 2nd April 2018. In this Article, We will have a detailed review of Rail Vikas Nigam IPO & we will go through in detail about their IPO Object, Allotment Status, Issue Details, Company background & Financials, IPO release date, IPO price band, IPO grey market pricing & more.


Rail Vikas Nigam IPO Review & Ratings

Rail Vikas Nigam IPO 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 ipoRail 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.

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.


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Rail Vikas Nigam IPO Date

The IPO release date has not been released yet. It will release post approval of Red Herring Prospectus.

Rail Vikas Nigam IPO Subscription

  Subscription
Day 1 X
Day 2 X
Day 3 X
Day 4 X
Day 5 X

RVNL IPO Subscription will be released post issue of IPO.

Rail Vikas Nigam IPO Allotment Status

The Allotment status of the IPO for every individual will be posted after 3-4 weeks of the IPO issue.

Rail Vikas Nigam IPO Price Band

The company has not decided the price band yet. It will be published before 1 day of the IPO release date.

Rail Vikas Nigam IPO Issue Size

The IPO Issue size has not be published yet in the public forum, we will update it soon once it gets published.

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.


Rail Vikas Nigam Limited – Company Overview

Rail Vikas Nigam Limited is a wholly owned government company, a Miniratna 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 ₹167,777.00 million and the balance
are ongoing. The PSU have an order book of ₹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 our 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

Assets of the Company

Assets (in INR & Millions)
  Mar’17 Mar’16 Mar’15 Mar’14 Mar’13
Non-Current Asset 29,586 22,146 18,962 15,850 8,769
Current Asset 59,010 200,030 142,392 116,100 105,368
Total Asset 88,596 222,176 161,354 131,950 114,137

Revenue & PAT of the Company

Revenue & Profits (in INR & Millions)
  Mar’17 Mar’16 Mar’15 Mar’14 Mar’13
Total Revenue 61629 47203 32698 25994 22006
Profit after Tax (PAT) 4431 4291 3368 1617 1401

Earnings per Equity Shares

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 Promoters

Our Promoter is the President of India acting through the Ministry of Railways. Our Promoter, alongwith its nominees, currently hold 100% of the pre-Offer paid-up Equity Share capital of our Company. After this Offer, our Promoter shall hold [●] % of the post-Offer paid-up equity share capital of our Company.


Rail Vikas Nigam IPO Offer Details or Issue Details

Offer of Equity Shares Equity Shares aggregating to ₹[●] million
Of which:
Employee Reservation Portion Up to [●] Equity Shares aggregating to [●] million
Accordingly,
Net Offer 208,502,010 Equity Shares aggregating to ₹[●] million
of which:
A) QIB Portion 104,251,004 Equity Shares
of which:
(i) Anchor Investor Portion 62,550,602 Equity Shares
(ii) Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed) 41,700,402 Equity Shares
of which:
Mutual Fund Portion 2,085,021 Equity Shares
Balance for all QIBs including Mutual Funds 39,615,381 Equity Shares
B) Non-Institutional Portion Not less than 31,275,302 Equity Shares
C) Retail Portion Not less than 72,975,704 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 IPO issue:

  • To carry out the disinvestment of [●] Equity Shares held by the Selling Shareholder in the Company, equivalent to 10% of our 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. Our Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholder.

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Rail Vikas Nigam IPO – Basis of the offer

The Offer Price will be determined by our 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 skilfully 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 ₹[●] 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.
  • The Offer price is [●] times of the face value of the Equity Shares

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Rail Vikas Nigam IPO Lead Managers

Lead Managers
Yes Securities (India) Limited
Elara Capital (India) Private Limited
IDBI Capital Markets & Securities Limited

Rail Vikas Nigam IPO Registrar to the Offer

Registrar of the Offer
Alankit Assignments Limited

Rail Vikas Nigam 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 Repu-tation Compe-titive Edge Finan-cial State-ment Popu-larity Index Promo-ters Repu-tation
Angel Broking 8.5/10 8.9/10 8.5/10 8.9/10 8.9/10
Sharekhan 8.6/10 8.9/10 8.6/10 8.9/10 8.6/10
Kotak Securities 8.8/10 8.5/10 8.9/10 8.9/10 8.8/10
ICICI Direct 8.8/10 8.8/10 8.7/10 8.9/10 8.9/10
IIFL 8.5/10 8.6/10 8.8/10 8.0/10 8.9/10
Edelweiss 8.5/10 8.9/10 8.9/10 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 8.9/10 8.9/10 8.9/10 8.9/10
Karvy 8.9/10 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

Rail Vikas Nigam limited IPO Grey Market Premium

Rail Vikas Nigam IPO grey market pricing will be released before 1-2 weeks of the IPO release date.


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Rail Vikas Nigam limited IPO News

News 1 – 4 PSUs file IPO papers with Sebi


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