REC extends gains after OFS oversubscribed

Shares of Rural Electrification Corporation (REC) extended gains and was up over 3% after the government 5% stake sale plan in the company through Offer for Sale (OFS) received full subscription.

The 49.37 million-share offering received 59.33 million bids as on 10:45 am. The non-retail investor category was subscribed 1.3 times, while the retail segment was subscribed nearly 70%, stock exchange data showed.

The government has fixed the floor price at Rs 315 per share, a discount of 2% to the closing price, Rs 321.25, on the NSE.

Most bids in the retail and non-retail category came at Rs 317.3 and Rs 315.09 respectively, data on the BSE showed.

 

As much as 20% of the offer size would be reserved for retail investors, who can bid for shares worth Rs 2 lakh. They would be offered shares at 5% discount to issue price.

The stock opened at Rs 318 and touched an intra-day high of Rs 332. At 11:10AM nearly 4 million shares were traded on both the stock exchanges.