REC FPO fully subscribed on final day

The follow-on public offer of state-run Rural Electrification Corporation got fully subscribed.

The follow-on public offer of state-run Rural Electrification Corporation got fully subscribed on the final day today,with most of the bids coming at Rs 205 per share.

The company received bids for over 21.20 crore shares against 17.17 crore shares on offer,according to the data available on the National Stock Exchange at 1400 hrs.

While majority (over eight crore) of the bids came in at Rs 205 a share,over five crore bids came in at Rs 204 a share and 180.27 lakh at Rs 207.

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Sources said about two dozen institutional investors,including foreign institutional investors,such as Prudential,Leg Mason,GMO,Reliance MF,ICICI Prudential and LIC have subscribed to the issue.

The floor price for the FPO is fixed at Rs 203,which is nearly 8 per cent lower than the prevailing market price. If subscribed fully,the issue would fetch about Rs 3,451 crore.

The company plans to sell 17.17 crore shares (including fresh issue of 12.87 crore shares and an offer for sale of 4.29 crore shares),resulting in an equity dilution of 17.39 per cent.

The government’s stake in the company would come down to 66.82 per cent from the current 81.82 per cent.

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The shares of REC closed 0.14 per cent lower at 212.65 on the Bombay Stock Exchange.

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