REC mulls FPO in Oct-Nov to finance electrification projects

MUMBAI: The Government is likely to divest some of its holding in public sector Rural Electrification Corporation (REC) through a follow-on public offer by October-November, a senior government official said.

"REC plans to come out with its Follow-on Public Offer (FPO) by October-November to finance existing electrification projects," Secretary of Power, Harishankar Brahma, told reporters on the sidelines of a power conference here today.

Brahma declined to quantify the amount to be raised through the FPO, but said, "we are aiming very high."

A senior company official had earlier said that the company was looking at raising Rs 2,000-crore through the QIP (Qualified Institutional Placement) route.

The proceeds of the FPO will be deployed to refinance existing rural electrification projects and ultra-mega power projects, Brahma said.

Asked on other sources of funding, he said "we are going to borrow from every where at the cheapest cost."