Rail Vikas Nigam Limited is engaged in the business of mobilization of financial resources, rail project development, enhance golden quadrilateral and port connectivity by implementing rail projects and raise extra-budgetary resources for Indian Railway project execution. The focus point will be on rail vikas nigam ipo review.
Rail Vikas Nigam IPO Review Issue Details :
- IPO Opens on – March 29, 2019.
- IPO Closes on – April 3, 2019.
- Face Value – Rs.10 Per Equity Share.
- Issue Price – Rs.17 – Rs.19 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Retail Discount – Rs.0.50.
- Employee Discount – Rs.0.50.
- Market Lot – 780 Shares.
- Minimum Order Quantity – 780 Shares.
- Issue Size – 253,457,280 Eq Shares of Rs.10 aggregating up to Rs.481.57 Cr.
- Listing Exchange – BSE, NSE.
- Draft Prospectus – Download
Objectives of the issue of the Company :
- To carry out the disinvestment of Equity Shares held by the Selling Shareholder in Rail Vikas Nigam Limited.
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges of this company.
About The Company –
- Rail Vikas Nigam Limited was incorporated in 2003 by the Ministry
of Railways India (MoR).
- This company is a wholly owned government company, a Miniratna (Category – I) Schedule ‘A’ Central Public Sector Enterprise.
- Rail Vikas Nigam Limited is involved in a verity of rail projects such as the construction of cable-stayed bridges, major bridges, workshops, metro projects, railway electrification, gauge conversion, new lines, doubling, and
- This company is also an equity partner of 10% in an SPV with 12 major ports under the Ministry of Shipping to undertake rail-related projects and activities in these ports (India Port Rail Company Ltd).
- MOR has transferred 172 projects of which 166 projects are sanctioned for
execution. Out of these, 60 projects have been fully completed totaling to Rs.167,777.00 million.
- The PSU has an order book of Rs.686,836.20 million as on February 28, 2018, which includes 106 ongoing projects.
Rail Vikas Nigam Limited,
Plot no 25, First Floor,
August Kranti Bhawan,
Bhikaji Cama Place,
R. K. Puram,
New Delhi – 110066.
EPABX : 91-11-26738299
The promoter of Rail Vikas Nigam Limited :
The promoter of the company is the President of India, acting through the Ministry of Railways, Government of India.
The Board of Directors of this company :
- Satish C. Agnihotri, aged 59 years, is the chairman and Managing Director of this Company.
- Gita Mishra, aged 59 years, is the Personnel Director of this Company.
- Vijay Anand, aged 58 years, is the Projects Director of this Company.
- Arun Kumar, aged 58 years, is the Operations Director of this Company.
- Sukhmal Chand Jain, aged 50 years, is the Government Nominee Director in this Company.
- A. P. Dwivedi, aged 54 years, is the Government Nominee Director on the Board of this Company.
- Sabita Pradhan, aged 56 years, is an independent Director of this Company.
- Shiv Kumar Gupta, aged 50 years, is an independent Director of this Company.
- Vinayak Bhalachandra Karanjikar, aged 55 years, is an independent Director of this Company.
- Rajen Habib Khwaja, aged 64 years, is an independent Director of this Company.
- Dr. L V Muralikrishna Reddy, aged 50 years, is an independent Director of this Company.
Competitive Strengths of Rail Vikas Nigam Limited :
- The main competitive strengths of Rail Vikas Nigam Limited is their expertise in undertaking all stages of project development and execution from conceptualization to commissioning.
- One of the strengths of this company is their established financial track record.
- Undertaken diverse categories of projects with an asset-light model is Rail Vikas Nigam Limited’s other competitive strength.
- Empowerment by MoR for sanctioning project estimates and award of contracts are strengths of this company.
- Standardization of operating procedures resulting in faster decision making is their most important strength.
- Experienced Board and Key Managerial Personnel and skilfully trained workforce of Rail Vikas Nigam Limited.
Business strategies of Rail Vikas Nigam Limited :
- To leverage the position of Rail Vikas Nigam Limited as an executing agency in MoR’s investment plan for ramping of rail infrastructure.
- Securing of rail infrastructure projects from other ministries/ PSUs is the business strategies of this company.
- Focus on high-value projects are another strategy of Rail Vikas Nigam Limited.
- Implementation of railway workshops and factory projects are one of the business strategies.
Company Financials :
Rail Vikas Nigam IPO Review :
The above figure demonstrates the annual profit of the company. According to the statement, it has gained maximum profit in the FY18. Now, let’s concentrate on the fundamental ratios of the company. As per the financial year 2017, EPS or earnings per share was at the level of 2.13. RoNW (return on net worth) and NAV/Share were 12.47 and 17.06 respectively. Besides the details, one can check the validity of the IPO through NSE bid details. Besides this, you may go through our earlier content to get an idea about it. Grey Market premium is also an important factor of analysing the IPO.
Therefore, the analysis says Rail Vikas Nigam IPO Review carries a NEUTRAL view. Investors may subscribe it for a long term horizon.