REC follow-on public offer on February 19

Written by Press Trust of India | Mumbai | Updated: Jan 30 2010, 05:04am hrs
Rural Electrification Corporations (REC) follow-on public offer, through which the government plans to divest 20% stake, would open on February 19. According to the draft red herring prospectus filed with the Sebi, the issue would close on February 23. At Thursdays closing price of Rs 242.75 on BSE, the FPO of 17,17,32,000 equity shares will raise over Rs 4,100 crore. The offer would comprise 5% stake dilution by the government and issuance of 15% fresh equity.

Post-FPO, the governments share in REC would come down to nearly 66% from present 81.82%.

The company, engaged in financing power projects, had posted 48.58% jump in net profit at Rs 474 crore for the quarter ended December 31, 2009. Shares of REC on Thursday closed at Rs 242.75 on BSE, up 1.17%. Besides REC, the government plans to sell its stake in NTPC, NMDC and Satluj Jal Vidyut Nigam by March-end. The follow-on offer of NTPC would open on February 3 and closes on February 5.