Rural Electrification Corporation (REC) is entering primary market with initial public offer (IPO) of 15.61 crore shares through a 100% book building process. The issue opens on 19 February 2008 and closes on 22 February 2008.

The price band of shares having face value of Rs 10 each has been fixed at Rs 90-105 per share

President of India, acting through nominees from the Ministry of Power currently holds 100% of the issued and paid up capital of the company. After the issue, Government of Indias shareholding will fall to 81.82% of the diluted post issue paid up capital.

REC proposes to utilise the issue proceeds to augment its capital base to meet the future capital requirements arising out of growth in its assets, primarily its loan and investment portfolio. As a public sector undertaking, REC has been accorded as Mini Ratna Grade-I status.

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