Government to go ahead with REC share sale

Government to go ahead with REC share sale
PTI
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First Published: Sat, Feb 09 2008. 12 12 AM IST
New Delhi: Unfazed by the turbulent market conditions taking a toll on the initial public offerings (IPOs) of Emaar MGF Land Ltd and Wockhardt Hospitals Ltd, the government on Friday said it is confident about the success of the planned IPO of state-run Rural Electrification Corp. Ltd (REC), just like those of other power sector PSUs.
Power secretary Anil Razdan said the meltdown in the market would not have any bearing on the public offer of REC, which expects to list on the bourses by the third week of March.
REC chairman and managing director A. Lakhina said: “There is a problem in the market. Wockhardt has withdrawn. Emaar MGF is still throttled. I am confident because this company is so strong and its track record is impressive.”
The REC public offer opens on 9 February. The company would offload 18.81% equity through the issue.
Meanwhile, REC director, finance, H.D. Khunteta said the company is awaiting the Reserve Bank of India’s (RBI) approval to launch a $200 million (Rs792 crore) fund in overseas markets for power equipment financing. “We have submitted with RBI an application to raise a $200 million fund, which can be used against import of power equipment” .
The firm had filed the application about three-four months ago and is in talks with the apex bank to expedite the process. “Rupee appreciation, a concern across sections, is acting as the main hurdle for the clearance. We are in talks with RBI to convince them,” he said.
Once cleared, the fund would raise money from overseas financial agencies.
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First Published: Sat, Feb 09 2008. 12 12 AM IST