Mumbai: State-run lender Rural Electrification Corp has priced its initial public offer at Rs105 a share, at the top end of its indicated price band, a senior official said on Monday.
“The board has approved Rs105. The group of minister’s have also concluded their meeting. Although we don’t have official word, it is likely to be the same price,” H D Khunteta, finance director told Reuters.
REC’s 156-million share offer attracted applications for 27.91 times the share on offer. While the qualified institutional buyers segment was subscribed 39.3 times, retail portion was subscribed 7.7 times.
“We expect to list the shares around 13th-14th of March,” Khunteta said. The company had indicated a price band between Rs85 and Rs105 per share for the sale.
At Rs105 a share, the offer will raise Rs16.4 billion. The issue comprises of equal parts of fresh shares and a stake sale by the federal government, bringing its holding down to 81.8% from 100% now.
REC’s share offer is the first share sale in a state-run power firm since the government divested 13.6% in transmission utility Power Grid Corp in October 2007, raising Rs29.8 billion.