Rural Electrification lights up dark IPO horizon, lists at 19% premium

Markets never fail to surprise you and that is perhaps the reason it allures so many. Exactly a month ago the listing of the largest IPO in Indian history had failed to meet investors’ expectations but today believers in the power growth story had smiles on their faces. State-run Rural Electrification Corp (REC), which debuted on the bourses today, listed at a premium of 19 per cent at Rs 125 on the Bombay Stock Exchange (BSE) and Rs 129.90 on the NSE, a 23.7 per cent premium over its issue price of Rs 105.

This puts the power sector lender’s market capitalisation at about Rs 10,300 crore. The company found a place in the list of the country’s 100 most valued firms on the very first day of its trading. REC was the most-traded stock at both BSE and NSE, with close to 18 crore shares changing hands at the two bourses. At the BSE, a total of 6.75 crore shares were traded, while total traded volume was about 11.2 crore. In terms of value, shares worth over Rs 2,000 crore were traded at the two exchanges.

The REC debut has come at a time when 13 out of 19 IPOs listed on the stock exchanges are quoting at a discount. The shares rose to as high as Rs 128.4 at the BSE before paring some of the intra-day gains. At the NSE, the shares closed at a premium of 16 per cent of Rs 121.30 after opening at a intra-day high of Rs 129.90. The stock hit intra-day lows of Rs 118.75 at the NSE and Rs 118.85 at the BSE, which were well above the issue price.