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REC to raise Rs16,000 cr in 2008-09

REC to raise Rs16,000 cr in 2008-09
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First Published: Sun, Apr 06 2008. 02 52 PM IST
Updated: Sun, Apr 06 2008. 02 52 PM IST
PTI
New Delhi: State-run Rural Electrification Corp. said on 6 April it targets to raise in the fiscal 2008-09 a sum of over Rs 16,000 crore, up 38% from Rs 10,000 crore mopped up in the previous year.
The company expects to disburse Rs40,500 crore in 2008-09, REC director (finance) H D Khunteta told PTI here.
“As per our present commitments, we would require to borrow over Rs16,000 crore in 2008-09, against about Rs10,000 crore last fiscal,” he said, adding that if need be the company would raise further amount with board’s permission.
REC, a prime lending institution to the power sector, is also looking to increase its borrowing limit to Rs60,000 crore from the present Rs45,000 crore, he said.
Khunteta said the company had on 31 March, 2008 raised Rs1,000 crore by issuing bonds in the overseas market. The bonds, due to mature after five years, carry an interest rate of 9.45%.
The company raised Rs1,640 crore through its initial public offer in February. REC listed with a 19% premium on the Bombay Stock Exchange.
Shares of the company closed at Rs102.45, down 1.82% on the Bombay Stock Exchange on Friday.
REC, hit the capital markets with 15.62 crore equity shares on 19 February. The issue was oversubscribed 27 times.
The company had set the IPO price band at Rs90-105. It later fixed the issue price at Rs105 a share. The issue constituted 18.18% of its fully diluted post-issue capital.
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First Published: Sun, Apr 06 2008. 02 52 PM IST