Rail Vikas Nigam Limited IPO

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History of Rail Vikas Nigam Limited

To bridge the infrastructure deficit on Indian Railways, the then Prime Minister, Bharat Ratna Shri Atal Bihari Vajpayee announced National Rail Vikas Yojana (NRVY) on 15th August 2002 in his address from the Red Fort. NRVY was formally launched by Hon’ble PM 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 twin objectives of raising 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.


RVNL functions as an extended arm of the Ministry of Railways working for & on behalf of MoR. It is empowered to act as an Umbrella SPV to undertake project development, resource mobilization etc. directly or by creating project specific SPVs or by any other financing structure found suitable. RVNL’s mandate includes mobilization of extra-budgetary resources through a mix of equity, and debt from banks, financial institutions, multilateral agencies like Asian Development Bank and bilateral agencies for project execution through PPP by the formation of project specific SPVs for Port and Hinterland connectivity. RVNL can enter into and carry on business relating to creation and augmentation of capacity of rail infrastructure on the fast track.

Business Model

RVNL is carrying out planning, development, resource mobilization & execution of railway related projects on fast track:

(i) Projects to be executed by RVNL are assigned by the Ministry of Railways (MoR).

(ii) Projects of other Central Ministries, State Governments and CPSEs also assigned to it.

(iii) Powers have accordingly been delegated to RVNL to facilitate project execution.

(iv) RVNL expenditure is largely dependent on the budgetary allocations by the Ministry of Railways.

(v) Projects are also being funded by EBR (IF), IRFC, ADB loan etc. through MoR.

Revenue Stream

(i) A consolidated management fee (inclusive of supervision charges) based on the average supervision charges allowed to Zonal Railways (8.5%).

(ii) RVNL pays a dividend to Ministry of Railways 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%.

Project Completed as on Date:

They are 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 its inception in 2003, the Ministry of Railways has transferred 172 projects to them out of which 166 projects are sanctioned for execution.

Out of these, 60 projects have been fully completed totaling to ₹167,777.00 million and the balance is ongoing.They have an order book of ₹686,836.20 million as on February 28, 2018 which includes 106 ongoing projects.

Rail Vikas Nigam Limited IPO Stock Quote & Charts



  • Open: 27.90
  • High - Low: 28.05 - 26.85
  • Previous Close: 27.55
  • Total Traded Volume: 650991
  • Updated On: 31-Jan-2020

Objects of the Rail Vikas Nigam Limited IPO:

(i) to carry out the disinvestment of 253457280  Equity Shares held by the Selling Shareholder in the Company.  (ii) to achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Rail Vikas Nigam Limited IPO Details:

Open Date: Mar 29 2019
Close Date: Apr 03 2019
Total Shares: 253457280
Face Value: ₹ 10 Per Equity Share
Issue Size: 480 Cr.
Lot Size: 780 Shares
Issue Price: ₹ 17-19 Per Equity Share
Retail Discount: .50 per share
Listing At: NSE,BSE
Listing Date: Apr 11 2019

Promoters And Management:

Promoters of Rail Vikas Nigam Limited Company are: The Promoter is the President of India acting through the Ministry of Railways.

Financials of Rail Vikas Nigam Limited IPO:

Comparison With Peers:

The RVNL at the cutoff price of 19 is having P/E multiple of 7.79 and its listed peer IRCON International Limited is trading at P/E of 9.92 based on FY18 earnings. IRCON International is also a Railway PSU. The IRCON International last year came up with an IPO at Rs. 465 and listed around 400. However, the allottees got a chance to exit at the end of the day when the price went to 450. The CMP of IRCON International is at 397 which is a 14% discount from issue price.

Recommendation on Rail Vikas Nigam Limited IPO:

Review and Recommendation of RVNL IPO from IZ Team is: 3/10 (i) The company has shown excellent growth of 28% in revenue from FY16 to FY-18 and debt/equity is under 1. (ii) The company is an asset-light model as they provide consultancy service to railway projects and the project cost is financed by the Ministry of Railways. However, lately, the company is not getting funds on time due to non-availability of funds for Infra Projects and had to use their own funds which have put the strain on Working Capital. Many of their on-going projects are delayed due to land acquisition, removal of encroachments, utility shifting, etc. The company is dependent upon MoR for all these clearances before starting the project. (iii) The company outsourced manpower from Railways. As on December 31, 2018, the Company had 550 employees of which 389 employees are on deputation from Indian Railways. (iv) The Pricing of IPO has been done reasonable but its peer IRCON is trading at Discount of 14% from Issue price. The Infra- PSU as a sector is not in flavor.  This issue is pure OFS and the company is not receiving anything so again big negative.

Registrar of Rail Vikas Nigam Limited IPO:

  1. Alankit Assignments Limited

Company Address:

Rail Vikas Nigam Limited 1st floor, August Kranti Bhawan, Bhikaji Cama Place, R. K. Puram, New Delhi 110 066 Phone No. +91 11 2673 8299 Fax No. +91 11 2618 2957 E-mail: investors@rvnl.org Website: www.rvnl.org

Bid Details of Rail Vikas Nigam Limited IPO as on
03-Apr-2019 20:00:00 IST

No.of shares offered No. of shares bid No. of total times
126,400,000 172,121,040 1.36
37,920,000 30,250,740 0.80
88,480,000 259,549,680 2.93
657,280 1,394,640 2.12
- - -
253,457,280 463,316,100 1.83
No.of shares offered No. of shares bid No. of total times
126,400,000 112,785,660 0.89
37,920,000 19,536,660 0.52
88,480,000 176,006,220 1.99
657,280 570,960 0.87
- - -
253,457,280 308,899,500 1.22
No.of shares offered No. of shares bid No. of total times
126,400,000 59,335,380 0.47
37,920,000 10,714,080 0.28
88,480,000 83,543,460 0.94
657,280 823,680 1.25
- - -
253,457,280 154,416,600 0.61

Total Number of Applications in Retail Category: 219380

Application-wise Subscription in Retail Category: 1.93

Discussion on Rail Vikas Nigam Limited IPO:


    MW Plz Reply…holding 1000 shares for 25 avg price….whts ur opinion….should hold for long term?
    time period suggestion

      5-10% hona chaiye. Big game can also happen as ticket size is small.

      See my message. Now operators havs taken control in the share.

    Rail Vikas Nigam Limited Subscription
    3-4-2019 @ 05:19:39 PM
    QIB => 1.3617
    NII => 0.7978
    RII => 2.8071
    EMP => 2.0993
    TOTAL => 1.7838

    @marketwizard what is your review about rvnl ipo ?

    I think metropolis is best one to buy.seems to be good pricing.

      Pricing of RVNL is also reasonable. Apply around 1 PM by seeing QIB and HNI quota. The listing of 5-10% gain can happened in RVNL but it is certainly not a long term bet.

      By Recommendation in the order.

      1. Poly Cab
      2. Metropolis
      3. RVNL


    Avoid this IPO until we see good QIB participation.

    Rail Vikas Nigam Limited mainly takes Railway Project from Indian Railways and executes them thereby get the commission. They get the loan from the Ministry of Railways for the execution of projects.

    However lately MoR has drastically reduced initial budget allotment of the year, for projects to be funded through budgetary support, to the extent that our Company has to utilize its own funds as working capital for many projects without getting timely reimbursement. The shortfall in reimbursement on this account as on February 28, 2019, is of 14,170 million. The uncertainty in timely provisioning of funds and reimbursement of the amount spent by the Company to carry out projects/works will impact the availability of working capital of the Company for implementation of projects; which in turn will impact the financial condition of the Company.

      Stocks To Watch

      Sheela Foam OFS promoters said they will sell 42.3 lakh shares or 8.68 percent of equity capital of the company with an over-subscription option of another 2 percent stake. The floor price has been set at Rs 1100 per share which is at a discount of 15.6 percent to the current market price, where to company can raise a maximum of Rs 573 crore

      1110-1120 Ka order laga do aa Gaya toh badiya warna chod dena

    Rail Vikas Nigam Limited IPO Snapshot

    Total Shares Outstanding= 2,085,020,100

    Mcap= 3961 Cr

    Net-Worth= 4062 Cr

    IRFC- Debt= 2842 Cr ( In case of IRFC loan, for payment of interest and principal MoR would make available to the Company the required funds, therefore, the risk related to IRFC loan is nil, debt servicing will pass through the Company’s books only.)


    Revenue= 7822 Cr
    EBITDA= 613 Cr
    PAT= 569 Cr
    NPM= 7.27%
    OPM= 7.84%
    EPS= 2.73


    P/E= 6.95

    P/B= 1


    IRCON which listed last year came at P/E of 10. However, the Issue listed at discount.

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