REC drops as government to pare stake through OFS tomorrow

Rural Electrification Corporation lost 3.19% to Rs 325 at 09:25 IST on BSE after the government announced sale of 5% stake in the company through an offer for sale tomorrow, 8 April 2015.

Meanwhile, the S&P BSE Sensex was up 77.71 points or 0.27% at 28,582.17

On BSE, so far 1.12 lakh shares were traded in the counter as against average daily volume of 2.38 lakh shares in the past one quarter.

The stock hit a high of Rs 327.80 and a low of Rs 322.90 so far during the day. The stock had hit a 52-week high of Rs 383.35 on 7 July 2014. The stock had hit a 52-week low of Rs 223 on 7 April 2014.

The large-cap company has equity capital of Rs 987.46 crore. Face value per share is Rs 10.

The Government of India (GoI), the promoter of Rural Electrification Corporation (REC) after market hours yesterday, 6 April 2015, issued a notice for offer for sale (OFS) of upto 4.93 crore equity shares of the face value of Rs 10 each, representing 5% of the total paid up equity share capital of REC through a sale on the separate window provided by the stock exchanges. The government will declare the floor price for the OFS latest by 17:00 IST today, 7 April 2015. Retail investors will be allocated offer shares at a discount of 5% to the bid price. The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence tomorrow, 8 April 2015 at 9:15 IST and close on the same date at 15:30 IST. The GoI held 65.64% stake in REC (as per the shareholding pattern as on 31 December 2014).

REC's net profit rose 12.4% to Rs 1379.83 crore on 19% growth in total income to Rs 5244.32 crore in Q3 December 2014 over Q3 December 2013.

REC, a Navratna Central Public Sector Enterprise under Ministry of Power, provides financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects.

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