Rail Vikas IPO Dates, RVNL IPO Review, Price Band, Market Lot Details (Price band fixed at ₹17-19 a share)
IPO (Initial Public Offering) is a process for every new company to offers its shares to the public for the first time.
Our today’s post is centered on Rail Nigam IPO review.
Rail Vikas is all set to hit on 29th March and will close on 3rd April 2019. The Rail Vikas Nigam is incorporated in the year 2003 in the ministry of railways.
The company is promoted by the presidents of India. The company has been doing very well in the profits and increasing year over year.
RVNL posted 7555 crore of turnover in 2017-18 which is 27.62% increased compared to 2016-17 while PAT 445 crore in 2017-18 and paid 167 crore dividend as well. Rail Vikas IPO will give a discount for the Retail and Employee investors as well.
What is IPO?
IPO stands for an initial public offering. it is the process through which the company can go public by a sale of its stock to the general public.
It could be a young, new and old company which decides to be listed on the stock exchange.
The company which offers its shares to the public is known as the issuer. After IPO, the company’s share is traded in the open market
Those shares can be further sold by the investor through secondary market trading.
About Rail Vikas Nigam Limited (RVNL)
To overcome the infrastructure deficit, the then prime minister of India late Atal Bihari Vajpayee announced National Rail Vikas Yojana (NRVY) on 15th August 2002 in his address from the Red Fort
The NRVY was formally launched by the PM of India on 26th December 2002.
To implement NRVY, RVNL was incorporated as a 100% owned PSU of Ministry of Railways (MOR) on 24-1-2003 with the dual objectives of augmenting extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on a fast track basis. RVNL became fully functional by March 2005.
The honble late Shri Atal Bihari Vajpayee has introduced announced the national rail Vikas Yojana in the year 2002, 15th August
In August 2004, it was decided that the issue of raising funds from the market to meet capital expenditure required for execution of projects by RVNL will be entrusted to IRFC. Accordingly, the focus of raising EBR for projects by RVNL has been on the creation of project-specific SPVs which are discussed in Para 2 below.
RVNL has been granted Mini Ratna-I status on 19-9-2013.
The paid up Equity Capital of the Company is Rs 2085 crore.
Business Model
RVNL is carrying out planning, development, resource mobilization & execution of railway related projects on fast track:
- Projects to be executed by RVNL are assigned by the Ministry of Railways (MoR).
- Projects of other Central Ministries, State Governments and CPSEs also assigned to it.
- Powers have accordingly been delegated to RVNL to facilitate project execution.
- RVNL expenditure is largely dependent on the budgetary allocations by the Ministry of Railways.
- Projects are also being funded by EBR (IF), IRFC, ADB loan etc. through MoR.
The Revenue stream of RVNL is:
- A consolidated management fee (inclusive of supervision charges) based on the average supervision charges allowed to Zonal Railways (8.5%).
- RVNL pays the dividend to MoR on the savings out of the consolidated management fee. For 2017-18, Rs 167.0 crore was paid as dividend and Rs 34.0 crore as tax on dividend which is 2.88% of project execution cost. Thus, the effective management fee of RVNL was only 5.62%.
Financials of Rail Vikas Nigam Limited IPO:
| Particulars(Cr) | 2016 | 2017 | 2018 | 6MFY19 |
| Balance Sheet Item | ||||
| Share Capital | 2085 | 2085 | 2085 | 2085 |
| Net Worth | 3422.4 | 3556.8 | 3925.248 | 4062.1 |
| Book Value | 16.41 | 17.06 | 18.83 | 19.48 |
| Long-Term Debt | 2624.00 | 2436.00 | 2259.00 | 1963.00 |
| Short-Term Debt | 766.00 | 912.00 | 891.00 | 961.00 |
| D/E | 0.99 | 0.94 | 0.80 | 0.72 |
| P/L Items | ||||
| Revenue | 4720.00 | 6162.00 | 7822.00 | 3770.00 |
| EBITDA | 338 | 529 | 613 | 309 |
| EBITDA Margins | 7.2% | 8.6% | 7.8% | 8.2% |
| Profit | 370 | 489 | 564 | 285 |
| Profit of Joint Venture | 128 | 54 | 99 | 24.3 |
| Total PAT | 429 | 443 | 569 | 253 |
| EPS | 2.05 | 2.12 | 2.73 | 1.22 |
| Key Ratios and Valuation | ||||
| RONW | 10.8% | 13.7% | 14.4% | 7.0% |
| P/E | 7.79 | |||
| P/B | 0.98 | |||
| Mcap | 3961 Cr | |||
| Mcap/Sales | 0.525 | |||
| EV | 5614 Cr | |||
| EV/EBITDA | 9.08 | |||
Rail Vikas IPO Review:
- Apply with Long Term View
Source:- Equity 2commodity
Rail Vikas IPO Dates & Price Band: (Tentative)
- IPO Open: 29-March-2019
- IPO Close: 03-April-2019
- IPO Size: Approx ₹482 Crore (Approx)
- Face Value: Rs.10 Per Equity Share
- Price Band: ₹17 to ₹19 Per Share
- Listing on: BSE & NSE
- Retail Portion: 35%
- Discount: ₹0.50 for Retail & Employees
- Equity: 253,457,280 Shares
Rail Vikas IPO Market Lot
- Shares: Apply for 780 Shares (Minimum Lot Size)
- Amount: ₹14820 for QIB & HNI
- Amount: ₹14430 for Retail & Employees
Rail Vikas IPO Allotment & Listing:
- The basis of Allotment: 08-April-2019
- Refunds: 09-April-2019
- Credit to demat accounts: 09-April-2019
- Listing: 11-April-2019
Rail Vikas IPO Details
| Issue Open | Mar 29, 2019 – Apr 3, 2019 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 253,457,280 Eq Shares of Rs 10 (aggregating up to Rs 481.57 Cr) |
| Face Value | Rs 10 Per Equity Share |
| Issue Price | Rs 17 – Rs 19 Per Equity Share |
| Retail Discount | ₹0.50 |
| Employee Discount | ₹0.50 |
| Market Lot | 780 Shares |
| Min Order Quantity | 780 Shares |
| Listing At | BSE, NSE |
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How does RVNL work?
RVNL engaged in the business of mobilization of the financial services, rail project development, enhance golden quadrilateral and port connectivity through the implementation of the rail projects and augment the extra budget resources for Indian railway services.
Business Model
RVNL is carrying out planning, development, resource mobilization, and execution of railway related projects on the fast track
- Projects to be executed by the RVNL are allocated by the ministry of railways
- Projects of other Central Ministries, State Governments and CPSEs also assigned to it.
- Powers have accordingly been delegated to RVNL to facilitate project execution.
- RVNL expenditure is largely dependent on the budgetary allocations by the Ministry of Railways.
- Projects are also being funded by EBR (IF), IRFC, ADB loan etc. through MoR.
Objects of the RVNL IPO issue
It is very important for investors to be familiar with the objective of the issue
- To carry out the disinvestment of equity shares held by the selling shareholder of the company
- To fetch the benefits of listing the equity shares on the stock exchanges
How to Apply RVNL IPO?
If you have a demat account, most banks offer the online IPO application. You can also contact the broker to apply in Rail Vikas IPO
Most banks including the ICICI bank, Axis and Kotak bank allow the customer to apply in IPO using the demat account.
How is the RVNL doing in terms of financials?
The net profit of the company for the financial year 2015, 2016, 2017 is 3,36,8,49 million 4,29,34 million 4,434,87 million and 2,35 9.35 million
Company Financials:
| Particulars | For the year/period ended (in Rs. 10 Lakhs) | |||||
|---|---|---|---|---|---|---|
| 30-Sep-18 | 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | ||
| Total Assets | 87,324.10 | 85,685.46 | 88,595.72 | 222,156.75 | 161,353.72 | |
| 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 | |
What are the key strengths of the RVNL?
Below I have listed the competitive key strengths of the company
- Consistent financial track record
- Authorized by the MOR
- Standardized operation process
- Upskill professionals and workforce
- Congruous Financial Track record
Who are the company promoters?
The promoters of the company are president of India, acting through the ministry of railways, a government of India
Who are RVNL clients?
Indian railway is the prime client of the RVNL, public sector undertaking, state, and central government, ministries are the other clients
RVNL Project Summary
MOR has assigned 172 projects to the RVNL till Feb 2019 and out of which 166 projects are executed. As of Dec 2018, an order book size is ₹77,504.28 Cr. The company also charge an annual consolidated management fee from MoR including execution of 10% for national projects, 9.25% for the metro projects, and 8.50% for other plan heads.
RVNL Board Of Directors List
| Name | Designation | Email ID | Contact |
|---|---|---|---|
| Pradeep Gaur | CMD RVNL | cmdrvnl@rvnl.org | 011-26183874 |
| SS Sandhu | DGM/Secretary to CMD | 011-26738120 | |
| Anil Kumar | AM/Secretary to CMD | 011-26738121 | |
| AK Ganju | Director/Finance | ashok.ganju@rvnl.org | 011-26192812 |
| Ajay Kumar | Director/Personnel | ajay.kumar@rvnl.org | 011-26192819 |
| Arun Kumar | Director/Operations | arun.kumar@rvnl.org | 011-26193112 |
| Vijay Anand | Director/Projects | vijay.anand@rvnl.org | 011-26169637 |
RVNL Corporate Office
RAIL VIKAS NIGAM LIMITED
Plot No. 25, First Floor, August Kranti Bhawan, Bhikaji Cama Place,
R. K. Puram, New Delhi – 110066
Email : info@rvnl.org
EPABX: 91-11-26738299
Fax: 91-11-26182957
RAIL VIKAS NIGAM LIMITED
Final Words
Dear Readers
I hope you had a great time reading about Rail Vikas Nigam IPO 2019. If you like it please do the honor of sharing among others via facebook and twitter etc.
The above analysis is done based on personal reviews.
I would like to advise that please consult your advisor before you make any investment.
Readers, would you like to invest in the Rail Vikas Nigam IPO?
Thanks for reading and have a great day ahead!
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