RVNL falls almost nearly 7% as offer for sale opens

Shares of Rail Vikas Nigam Ltd (RVNL) fell 6.6% on the morning of July 27 when the government launched a public offering (SFO) to reduce its ownership to 5.36%.
As of 09:30, the stock is trading at Rs 129 on BSE, down 4% from the previous closing price. Shares hit a low of Rs 125.50 and fell 6.6% at the start of trading.
The SFO is at Rs 119 per share, down more than 11% from the closing price of Rs 134.40 on July 26. The government is looking to raise around Rs 1,330 crore. SFO will open to non-retail and retail investors on July 27 and 28 respectively. The government will sell 5.36% of capital, including 1.96% green shoe option. The recommendation is to offload 11.17 stock cores to the PSU rail. RVNL Works is the construction branch of the Ministry of Railways for project implementation and transport infrastructure development. It recently won a contract worth Rs 808 from the National Highways Authority of India to renovate and upgrade the Chandikhole-Paradip section in Odisha from four to eight lanes.