State-run Rural Electrification Corporation (REC) made a decent debut on Indian bourses on Wednesday, amidst uncertain conditions in the primary and secondary markets. At the NSE, REC was listed at a premium of 23%, while on the BSE, debuted at a premium of 19%, against its issue price of Rs 105.
At the NSE, the stock opened at Rs 129.90, a premium of 23.71% over its issue price, and moved to a low of Rs 118.75.
The stock finally managed to close the day at Rs 121.30 giving a return of Rs 16.30, or 15.52%, on its first day. Around 11.16 crore shares changed hands at the NSE. Against this, the BSE Power index ended flat with a minor loss of 2.11 points, or 0.06% lower, at 3,269.41 points.
The public issue of REC received a good response in an otherwise uncertain market where several big-ticket IPOs were forced to withdraw their offers due to a lack of participation from investors.
The issue was subscribed over 27 times, with the portion reserved for Qualified Institutional Buyers subscribed 6.5 times, while both retail and non-institutional investors segments were subscribed by 0.78 times and 0.76 times, respectively. The price band for the issue was fixed at Rs 90-105, constituting around 18.18% of the fully diluted post-issue capital.
The public sector enterprise is engaged in financing and promoting transmission, distribution and generation projects across the country. The company provides financial assistance to public sector power utilities at the central and state levels, private sector power utilities, and joint sector clients.