REC IPO

Rural Electrification Corporation (REC) is a leading public financial institution exclusively focused on extending finance to the Indian Power Sector, which, going by the government’s
stated intentions, is slated for tremendous growth during the Eleventh Five-year
Plan (2007-2012). It is estimated that Rs10.3 lakh crore of capital would be
required to set up the power infrastructure targeted to be added by 2012. Within
the available funding sources, the government envisages REC’s share at
Rs59,150cr at least. Accordingly, we expect REC to deliver a CAGR growth of
25% in Advances over FY2008-10E. Importantly, REC’s mandate has evolved
over the years and it now finances all segments of the Power sector throughout
the country. REC’s changing sanction mix corroborates this viz., the private sector
borrowers and generation projects comprise an increasing share of sanctions, in
line with the present dynamics of the Power sector.
Issue Open: 19 February 2008
Issue Close: 22 February 2008
Issue Details
Pre-Issue Equity Share Capital:
Rs4,408cr (FV of Rs10)
Issue size: *Rs1,405cr - **Rs1,639cr
(INCLUDING Offer for Sale, comprising 50%
of total issue)
Post issue Equity Share Capital:
Rs5,111cr – Rs5,228cr (FV of Rs10)
* at lower end of price band
** at upper end of price band
Offer Price Band:
Rs90-105

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