The shares of the company were trading down 8.88 per cent at Rs 27.70 on BSE.
The government said it plans to sell 10 per cent of the company with a greenshoe option of 5 per cent. The government currently holds 87.84 per cent in RVNL. The offer for sale opens on Wednesday for non-retail investors and the same will open for retail investors on Thursday.
The floor price for the offer is set at Rs 27.50 per share. This is at a discount of 9.53 per cent to the last closing price.
Overall, the government plans to sell 31.27 crore shares, including the oversubscription option. A minimum of 25 per cent of the offer shares shall be reserved for mutual funds and insurance companies, subject to receipt of valid bids, said the offer document.
If the sale is materialised at the floor price, the government will rake in Rs 860 crore.
Elara Securities and IDBI Capital Markets are the managers of the issue.