REC to invite bids for its FPO between Feb 19-23
Rural Electrification Corp (REC), a state-run financier of power projects, on Monday said it will invite bids for its follow-on public offer (FPO) between February 19 and 23.
By PTI |
MUMBAI: Rural Electrification Corp (REC), a state-run financier of power projects, on Monday said it will invite bids for its follow-on public offer (FPO) between February 19 and 23.
The company plans to sell 17.17-crore shares through the FPO, which will constitute 17.39 per cent of its fully diluted post-issue capital.
The issue consists of a fresh issue of 12.87-crore equity shares and an offer for sale of 4.29-crore shares.
"We intend to utilise the entire net proceeds (from the issue) during fiscal 2010 to augment our capital base to meet the future capital requirements arising out of growth in our assets, primarily our loan and investment portfolio, and for other general corporate purposes," REC Chairman and Managing Director, P Uma Shankar, told reporters here.
Shankar said three-fourths of the proceeds from the issue would be directed toward REC's operations, while the remaining one-fourth would go to the Government of India.
REC's follow-on offer will be the second issue to employ the French Auction route of bidding wherein retail investors and High Networth Individuals (HNI) can bid at the floor price.
Shankar said the Empowered Group of Ministers (EGoM) will fix the floor price for the issue on February 17.
The company plans to sell 17.17-crore shares through the FPO, which will constitute 17.39 per cent of its fully diluted post-issue capital.
The issue consists of a fresh issue of 12.87-crore equity shares and an offer for sale of 4.29-crore shares.
"We intend to utilise the entire net proceeds (from the issue) during fiscal 2010 to augment our capital base to meet the future capital requirements arising out of growth in our assets, primarily our loan and investment portfolio, and for other general corporate purposes," REC Chairman and Managing Director, P Uma Shankar, told reporters here.
Shankar said three-fourths of the proceeds from the issue would be directed toward REC's operations, while the remaining one-fourth would go to the Government of India.
REC's follow-on offer will be the second issue to employ the French Auction route of bidding wherein retail investors and High Networth Individuals (HNI) can bid at the floor price.
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Shankar said the Empowered Group of Ministers (EGoM) will fix the floor price for the issue on February 17.
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