State-run RVNL gets nod for IPO

State-run Rail Vikas Nigam Limited (RVNL), a special purpose vehicle (SPV) created in 2003 for rail project development and mobilising financial resources, has received regulatory approval for an IPO. The government will sell a little over 208.5 million shares, excluding any shares reserved for employees, resulting in a stake dilution of over 10 per cent. The proceeds from the estimated Rs 6.5 billion IPO could be deployed to boost rural and infrastructure spending as well as contain fiscal deficit. Yes Securities (India), Elara Capital (India) and IDBI Capital Markets and Securities are the merchant bankers for the IPO.