REC IPO Oversubscribed by 28 Times

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While the market sentiments have been uncertain in the recent past, we are pleased to share that the State-run Rural Electrification Corporation Limited received very good response from investors and has been oversubscribed by over 28 times as on the last date of issue ie; Friday, February 22, 2008.



Following are the subscription figures as on February 22, 2008.



Category QIBs Retail HNIs
Subscription 39.30 times 7.67 times 27.11times

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State-run lender Rural Electrification Corp has priced its initial public offer at Rs 105 a share, at the top end of its indicated price band, a senior official said on Monday.

"The board has approved 105 rupees. The group of minister’s has also concluded their meeting. Although we don't have official word, it is likely to be the same price," Finance Director HD Khunteta told reporters.

REC's 156-million share offer attracted applications for 27.91 times the share on offer. While the qualified institutional buyers segment was subscribed 39.3 times, retail portion was subscribed 7.7 times.

"We expect to list the shares around 13th-14th of March," Khunteta said. The company had indicated a price band between 85 rupees and 105 rupees per share for the sale.

At 105 rupees a share, the offer will raise 16.4 billion rupees. The issue comprises of equal parts of fresh shares and a stake sale by the federal government, bringing its holding down to 81.8 percent from 100 percent now.

REC's share offer is the first share sale in a state-run power firm since the government divested 13.6 percent in transmission utility Power Grid Corp in October 2007, raising 29.8 billion rupees.