Rural Electrification Corporation (REC) will list on the stock exchanges on Wednesday, 12 March 2008. The company has fixed the issue price at the top end of the Rs 90 to Rs 105 price band.The IPO price Rs 105 discounts the year ended March 2007 EPS of Rs 9 with a PE multiple of 11.66.
The REC IPO ended on 22 February 2008 with 27.91 times subscription. The IPO received bids for 435.68 crore shares as against 15.61 crore shares on offer.
The qualified institutional buyers (QIBs) portion was subscribed 39.30 tomes, the non institutional investors portion was subscribed 27.11 times and the retail investors portion was subscribed 7.67 times.
REC, a term lending institution and a government enterprise, is engaged in the business of lending to power projects.
The company intends to use the issue proceeds for augmenting its capital base to meet future capital requirements arising out of its business growth and other general corporate purposes.
REC reported a net profit of Rs 775.03 on sales of Rs 2932.84 crore in the year ended March 2007.|