Rail Vikas Nigam IPO Opens on March 29; Should you Invest?

The IPO market has picked up and the analysts are expecting that best is yet to come. The news of IPO’s like Prestige Estates, Pinterest, TCIL, make us believe in the fact that sentiments are positive and share market is picking up its ante. But there is one more IPO that is making a lot of hullabaloo i.e. Rail Vikas IPO. Let’s have a look at the details

The company was incorporated in 2003 by the Ministry of Railways and has garnered the status of miniratna company. The company is engaged in the business of rail projects execution. The company is fundamentally involved in a variety of projects like construction of cable- stayed bridges, monetary allocation and supervision, metro projects, gauge conversion, construction of new lines, doubling and implementing other rail- based projects.

The major client is Indian Railways and has many other clients that span from state and central government departments, ministries, and a lot more.

Financial Summary

The company has registered the net profit of Rs 3368.49 million in FY 2015, Rs 4294.34 in FY 2016, Rs 4434.87 million in 2017 and Rs 2,359.35 million.

The promoter of the company is the President of India, acting on behalf of the Ministry of Railways, Government of India.

The company aims to raise capital

• To carry the divestment process held by selling shareholder of the company
• To attain the benefits of the listing of equity shares

Rail Vikas Nigam IPO Details

The bid starts from March 29,2019 and it will close on April 3, 2019. The finalization of allotment will be done on April 8, 2019 and the refunds will be made on April , 2019.

Here are the tabulated details of the same

Issue Open	March 29,2019-  April 3, 2019
Issue Type	Book Built
Issue Size	253,457,280 equity shares of face value Rs 10 each
Face Value	Rs 10 per equity share
Issue Price	Rs 17-Rs 19 per equity share
Retail Discount	Rs 0.50
Employee Discount	Rs 0.50
Market Lot	780 shares
Minimum Order Quantity	780 shares
Listing at	BSE, NSE

Should you invest?

Apart from being backed by the government, there are several reasons that make this issue attractive like the company has a consistent good financial record, has the experience to undertake different rail- based projects, authorized by MOR, has standard operations and is backed by Ministry of Railways. Overall the investment in this IPO will give you high returns.