REC initial public offer subscribed over 27 times
22 Feb 2008
Mumbai: The Initial Public Offer (IPO) of Rural Electrification Corporation (REC) got subscribed over 27 times until 5 pm on Friday (February 22), the last day of subscription, as per the NSE website.
The IPO of the state-run power sector lender received 4,262 million bids against 156 million shares on offer in the price band Rs90-05 per share. Around 240.8 million bids were received at the cut off price.
The IPO got subscribed 4.13 times of the issue size till yesterday, with most of the bids coming in from institutional investors. The issue, expected to raise Rs1,640 crore, closed for subscription today
However, the retail portion was subscribed 0.78 times of the 30 per cent of the total offer on offer. The employees' portion was subscribed 0.71 times.
The float has been mainly subscribed to by institutional investors. The 60 per cent or 9,13,30,200 shares allocated to qualified institutional buyers, was subscribed 6.5 times. Of this, domestic financial institutions, banks and insurance companies have bid for 3,743 million shares, while FIIs bid for 2,049 million shares. The 5 per cent or 45,66,510 shares reserved for mutual funds received bids for 149 million shares.
The non-institutional investor portion of 1,52,21,700 shares, or 10 per cent allocated to them, was subscribed 0.76 times.
The net issue to the public is for 1,522 million shares, constituting 18.18 per cent of REC's fully diluted post-issue capital.
Post issue, the government's holding in the company will fall to 81.82 per cent from 100 per cent at present.
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