REC gains after strong demand for OFS

Rural Electrification Corporation advanced 1.58% to Rs 335.25 at 09:55 IST on BSE after the government's offer for sale of 5% stake in the company saw good demand from investors.

Meanwhile, the S&P BSE Sensex was down 84.68 points or 0.29% at 28,642.38

On BSE, so far 15.05 lakh shares were traded in the counter as against average daily volume of 2.49 lakh shares in the past one quarter.

The stock saw high intraday volatility. The stock hit a high of Rs 346 and a low of Rs 333.55 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.

Rural Electrification Corporation (REC)'s promoter viz. the Government of India (GoI) had put on block 4.93 crore shares, representing 5% stake of the company through Offer for Sale (OFS) via the stock exchanges mechanism yesterday, 8 April 2015. The OFS got bids for 27.31 crore shares, compared with 4.93 crore shares on offer, as per data from the stock exchanges. The OFS was subscribed 553.3% at an indicative price of Rs 325.10 per share for retail section and Rs 324.73 per share for non retail section. The floor price for OFS was fixed at Rs 315 per share. Retail investors will be allocated offer shares at a discount of 5% to the bid price. With the conclusion of OFS, the government's stake in REC has come down to 60.64% from 65.64% earlier.

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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