REC IPO to open on Feb 19

KOLKATA: The proposed IPO of Rural Electrification Corporation Ltd is on track with the issue to open on February 19, a top company official said today virtually ruling out the possibility of deferring of the issue or lowering the price band.

"The IPO will open on February 19 as scheduled and there is no sign of change in plans as of now and I do not hope there will be any change later," REC Director (Finance) H D Khunteta said here on the sidelines of a company roadshow.

"Our issue is very competitively priced and with strong fundamentals. We are confident the issue will sail smoothly. However, under the present market conditions the issue might not get oversubscribed by hundreds of times," Khunteta added.

The response from investors, he said, was very strong at the overseas roadshows. Meanwhile, REC was likely to disburse Rs 13,000 to 14,000 crore during the current fiscal as against Rs 10,700 crore in 2006-07.

The mini-ratna company also aimed to increase the annual disbursement to Rs 1,00,000-1,20,000 crore over the next five years to garner 20 per cent market share in power sector financing, which was estimated to require a Rs 6,00,000 crore loan in the next plan period.