REC IPO fully subscribed just in 27 minutes flat!

• Subscribed by 2.14 times by 5 PM on Day 1
• Enthusiastic response from investors in choppy market
MUMBAI, February 19, 2008: Daring a choppy capital market, the IPO of the state-run Rural Electrification Corporation Limited (REC) got subscribed within just 27 minutes of its opening today. The issue was subscribed 2.14 times by 5 PM with the company receiving a total bids for 33.45 crore shares.
REC entered the capital markets with a public issue of 156,120,000 Equity Shares of Rs. 10 each through 100% book building process with a price band of Rs 90-Rs 105. The Issue shall constitute approximately 18.18% of the fully diluted post-issue capital of REC. The Issue closes on February 22, 2008. IL & FS Investsmart Securities Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the Issue. The Equity Shares are proposed to be listed on the NSE and the BSE.
The Company proposes to utilize the net proceeds from the fresh issue to augment its capital base to improve its borrowing capacity in order to support the future growth in its assets.
REC is one of the leading public financial institutions in Indian power infrastructure, engaged in the financing and promotion of transmission, distribution and generation projects throughout India.
The IPO came as the government mandated REC and Power Finance Corporation (PFC) to mobilize funds to ensure that viable projects do not suffer for want of funds as the government has drawn up plans to bridge the demand-supply yawning gap in power sector. The government’s Eleventh Plan (2008-2012) anticipates a substantial increase in the country’s power capacity. The Ministry of Power’s data shows that India’s power generation system, as on March 31, 2007, had a total installed capacity of 132,330 MW and an additional 78,577MW are required to meet the projected demand during the plan period. Thus, the overall fund requirement by 2012 for the sector has been estimated at a whopping Rs 10,316,000 million.
B N KumarConcept PR93210 48332/ 93200 48332