Rural Electrification Corp applies for IPO

NEW DELHI: State-run power sector lending institution Rural Electrification Corporation has filed a Draft Red Herring Prospectus with market regulator SEBI for its initial public offer through which it expects to raise up to Rs 1,200 crore.

The company has filed a DRHP with SEBI for the maiden public issue, in which about 15.6 crore shares would be offered, an REC spokesperson said.

These shares constitute 20 per cent of the existing equity capital of REC, he added.

REC would issue the shares at a price to be decided through the book building process and the scrip would be listed on Bombay Stock Exchange and National Stock Exchange.

The proceeds of the issue would be utilised to meet the company's future corporate requirements, the spokesperson said.

Power Grid Corporation of India Ltd has also filed its red herring prospectus with the market regulator for an initial public offer to raise an estimated Rs 3,500 crore.

Last year, the Cabinet Committee on Economic Affairs had approved the proposal for initial public offerings of three state-owned power companies -- Power Finance Corporation, Power Grid Corporation and Rural Electrification Corporation.