India proposes to sell up to 5.36% stake in Rail Vikas Nigam

NEW DELHI/BENGALURU, July 26 (Reuters) - The Indian government will sell a stake of up to 5.36% in state-owned Rail Vikas Nigam (RAIV.NS) this week, in a deal that could fetch 13.3 billion rupees ($162.12 million), an exchange filing showed on Wednesday.

The government, which owns a 78.2% stake in RVNL, has proposed to sell a 3.4% holding in the state-run railway infrastructure company, with an option to sell 1.96% more if oversubscribed.

The floor price for the sale has been set at 119 rupees per share, representing an over 11% discount to Rail Vikas stocks closing price on Wednesday.

Out of its 510 billion rupees divestment target for 2023/24, the government has garnered 42.3 billion rupees through sale of shares in other state-run firms.

In May, the Indian government sold a 3% stake in Coal India (COAL.NS).

($1 = 82.0366 Indian rupees)