Rural Electrification Corporation’s follow-on public offer likely on Feb 11

Rural Electrification Corporation’s follow-on public offer to raise Rs 3,300 crore is likely to open on February 11.REC’s FPO will come up between February 11 and 15
REC, whose mandate is to finance and promote electrification of rural areas, received the Cabinet Committee on Economic Affairs’ nod in October this year for 20 per cent share sale.
The REC offer would comprise five per cent stake dilution by the Government and issuance of 15 per cent fresh equity. Post FPO, the Government’s share in REC would come down to nearly 66 per cent from the present 81.82 per cent. REC would be the first public sector company to comply with the Government proposed norm of disinvesting 25 per cent in the PSUs.


Source: BL