State-run lender Rural Electrification Corp Ltd (REC) has filed initial papers with the market regulator for a 156-million-share initial public offering, a senior official said on 23 August.
The book-built issue will equally comprise a fresh issue of shares and disinvestment by the federal government. Post-issue, the government’s stake in the firm will come down to 81.82% from 100%.The company is aiming to raise about Rs12 billion from the issue, another source close to the issue said. The funds raised from the fresh issue will be used for funding ongoing and future projects.
REC is the nodal agency for promoting rural electrification projects and also finances state electricity boards for investment in such projects. For the year to March 2007, it reported net profit of Rs6.6 billion on total income of Rs28.5 billion. The company is one of the three state-run power firms cleared earlier this year to sell equity, marking a limited revival of asset sales by the Indian government.
ICICI Securities Ltd, IL&FS Investsmart and SBI Capital Markets are the book-running lead managers to the issue
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