Shares of Rail Vikas Nigam Ltd (RVNL) on Thursday made a flat stock market debut after its initial public offering (IPO) was subscribed nearly 1.83 times last week. RVNL shares opened at Rs 19 per share -- the issue price of the IPO -- on BSE and NSE. The shares hit an intraday high of 4 percent on the NSE. At the NSE, shares of the company touched a high of Rs 19.50 and a low of Rs 18.65.
At 10:56 AM, the stock gained 1.50 percent at Rs 19.30 per share on the NSE.
The initial public offering (IPO) of RVNL opened between March 29 and April 3 with an aim to raise about Rs 482 crore.
Most brokerages are positive about the stock, given the company's strong order book, attractive valuations and growth prospects.
RVNL is a government-owned company engaged in railway projects which includes constructing new railway lines and bridges, metro projects, railway electrification, workshops, gauge conversion, etc.
As of December 2018, its order book stood at Rs 77,504 crore (10 times of FY18 revenue). As per a CARE Rating report, over FY13-17, RVNL has contributed more than 33 percent of the doubling projects and more than 21 percent of electrification projects of the total reported by Indian Railways.