RVNL Vs IRCON Share: A Comparison of India’s Government-Owned Engineering Companies
Introduction:
In a recent development, the Indian government has announced its plan to offer shares of IRCON, a renowned engineering and construction company, for sale in the open market. This move aims to raise funds and enhance the government’s treasury by adding approximately 1,100 crores INR. Let’s take a closer look at the comparison between RVNL and IRCON shares to understand the implications of this decision.
1. Offer-for-Sale Scheme:
Under the offer-for-sale scheme, the government plans to sell approximately 8% of its stake in IRCON, which translates to around 7.53 crore equity shares. These shares will be available at a market price of 154 INR per share. The IRCON share price has shown a growth of 1.74% on Monday, trading at 163.45 INR.
2. Oversubscription in Institutional and Retail Segments:
The offer-for-sale scheme of IRCON has witnessed oversubscription in both the institutional and retail segments. Retail investors have subscribed to the scheme 3.01 times more than the available shares. On the other hand, institutional investors have shown an oversubscription of 4.63 times for the 15.66 crore shares, valued at 2,400 crores INR.
3. Current Government Holdings:
As of now, the Indian government holds a majority stake of 73.18% in IRCON, which is a significant share in the company. This move to sell shares is in line with the government’s strategy to raise funds by divesting its holdings in various central public sector enterprises.
4. Financial Year 2023-24 Budget:
In the financial year 2023-24 budget, the Indian government had set a target of raising 51,000 crores INR by selling shares of public sector enterprises. The sale of shares in IRCON is a step towards achieving this goal, as the government has already raised 8,859 crores INR through such divestments in the current fiscal year.
Short:
The sale of IRCON shares in the open market presents an opportunity for investors to acquire a stake in a well-established engineering and construction company. The oversubscription in both the institutional and retail segments reflects the confidence and interest of investors in the growth potential of IRCON. As the Indian government continues its divestment strategy, it will be interesting to see the impact of such decisions on the country’s public sector enterprises and the overall economy.
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RVNL Vs IRCON Share 12 December 2023: A Comparative Analysis
Introduction:
The Indian government’s decision to offer shares of IRCON for sale has generated considerable interest in the market. Let’s delve into the comparison between RVNL and IRCON shares to gain a deeper understanding of this development.
1. RVNL (Rail Vikas Nigam Limited):
RVNL is an important player in the railway infrastructure sector, primarily focused on project execution and consultancy services. The company aims to enhance rail connectivity and modernize existing infrastructure. RVNL has been instrumental in the successful completion of numerous projects, contributing to the development of the Indian railway network.
2. IRCON (Indian Railway Construction Company Limited):
IRCON is a leading engineering and construction company engaged in various sectors, including railways, highways, bridges, tunnels, and more. The company has a strong presence in the domestic and international markets, with a proven track record of executing complex projects. IRCON’s expertise lies in delivering high-quality infrastructure solutions, making it a preferred choice for both public and private clients.
3. Offer-for-Sale Scheme:
The offer-for-sale scheme for IRCON entails the government selling approximately 8% of its stake in the company. This move aims to raise funds for the government while providing an opportunity for investors to acquire shares in a reputed company. The oversubscription in both the institutional and retail segments indicates the market’s confidence in IRCON’s growth prospects.
4. Government’s Divestment Strategy:
The Indian government has been actively pursuing its divestment strategy to raise funds and reduce its stake in public sector enterprises. The sale of shares in IRCON aligns with this strategy, contributing to the government’s treasury and promoting private sector participation in key sectors.
Short:
The comparison between RVNL and IRCON shares highlights the significance of these government-owned companies in India’s infrastructure development. The sale of IRCON shares presents an attractive investment opportunity, given the company’s strong market presence and track record. As the government continues its divestment plans, it will be interesting to observe the impact on these companies and the overall economy. Investors and stakeholders can benefit from carefully analyzing and evaluating the potential of RVNL and IRCON shares in light of these developments.
Disclaimer: This is News Coverage with Opinions of Experts and Should Not Be Taken as Direct Market Buying Tip. Market is always subject to risk. We recommend taking our content as research before investing.
