REC follow-on offers (FPO) : Oversubscribed 3.14 times

by khalid on 24/02/2010 · 0 comments

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Estate owned Rural Electrification Corporation (REC)’s principal activity is to provide financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects. The FPO of Rural Electrification Corporation, has been finally oversubscribed 3.14 times on an overall basis. Retail Investors have not shown keen interest in the FPO, which is evident from the fact that the Retail Investors category was subscribed only 0.2297 times.

The category-wise subscription status of REC follow-on offers (FPO) is given below:-
QIB: 5.5172 times
Non-Institutional Investors: 2.0542 times
Retail: 0.2297 times
Employee : 0.8531 times
Overall: 3.1400 times

The proceeds of the FPO will be used by the company to augment capital base to meet future capital requirements. Rural Electrification Corporation Ltd is a rapidly growing company which is clear from last two years data of their revenues. The companies consolidated revenues was Rs 3541.08 crores in FY08 which increased to Rs 4923.30 in FY09 ending Mar 2009. Government of India has granted “Navratna” status to the company along with other 18 India public sector undertakings. The government holding will be reduced to 66.80% post issue.

Issue Details :-
Issue Period : 19th Feb 2010 – 23rd Feb 2010
Issue Type : 100% Book Building process
Issue Size : 171732000 Equity Shares of Rs. 10 (Rs 3486.16 Crores)
Face Value : Rs. 10 Per Equity Share
Price Range : Rs 203 Per Equity Share
Market Lot : 30 shares
Minimum Order Quantity : 30 shares
Listing At : BSE and NSE

Book Running Lead Managers for the FPO are DSP Merrill Lynch Limited,
ICICI Securities Limited, JM Financial Consultants Private Limited and Kotak Mahindra Capital Company Limited.

Registrar of the Issue :-
Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India

Allotment status can be seen here later on.

Share’s Data :
BSE Code : 532955
Mkt. Cap: Rs 18260 Crores
P/E: 14.37
EPS: 14.81
Face Value : Rs 10
Last Dividend : 30% On Dec 2009
52 Week H/L : Rs 274.50 / 76.00
Rural Electrification Corporation Ltd. share’s CMP is Rs 212.65 on 23rd Feb 2010.

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