The government plans to divest a part of its stake in Rail Vikas Nigam Ltd through an offer for sale (OFS) by the end of October-December quarter as part of its plan to kick-start the stake sale process, which has been impacted by the Covid-19 pandemic.

Officials said an inter-ministerial group will meet soon to finalise the OFS and the quantum of stake to be sold in the next quarter.

They said the government plans to bring down its stake in the firm below 75 per cent over a two-year period to comply with Sebi norms. At present, the government holds 87.84 per cent.

In April last year, the government raised Rs 476 crore by selling its 12.12 per cent stake through an initial public offering of RVNL.

The members of the group include officials from the Railway Board, Dipam, legal and finance ministry officials.

Last week, the government invited bids to appoint merchant bankers and brokers to sell its stake in Indian Railway Catering and Tourism Corp Ltd (IRCTC) through an offer for sale.

The government at present holds a 87.40 per cent stake in IRCTC. To meet Sebi’s public holding norm, the government has to lower its stake in the company to 75 per cent.

The government intends to select and appoint up to four merchant bankers with requisite experience in public offerings, who together will form a team.

The number of merchant bankers shall be decided at the time of appointment.