REC spurts to intraday high as OFS fully subscribed

Rural Electrification Corporation advanced 2.84% to Rs 330.80 at 12:35 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 up 199.24 points or 0.7% at 28,715.83

On BSE, so far 5.33 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 334 and a low of Rs 318 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.

Bids were received for a total of 9.02 crore shares of REC till 12:35 IST compared to offer for sale of 4.93 crore shares by the government of India, as per the live bidding data from BSE. Overall, the OFS was subscribed 1.82 times with indicative price of Rs 315.17 per share for non retail section and Rs 319.03 per share for retail section. The OFS is taking place on a separate window of the stock exchanges today, 8 April 2015 from 9:15 IST to 15:30 IST. The company after market hours yesterday, 7 April 2015, fixed the floor price for offer for sale (OFS) of shares by its promoter viz. the Government of India (GoI) at Rs 315 per share. The floor price for the OFS is at a discount of 2.06% to the stock's closing price of Rs 321.65 yesterday, 7 April 2015. GoI after market hours on 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. Retail investors will be allocated offer shares at a discount of 5% to the bid price. The GoI currently holds 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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