Rural Electrification Corporation (REC), one of the leading public financial institutions in Indian power infrastructure, proposes to enter the capital markets on February 19, 2008 with a public issue of 156,120,000 equity shares of Rs 10 each through 100% book building process.
equity shares for subscription by eligible employees as defined in the Red Herring Prospectus.
Post issue, the company’s market cap will be of Rs 7727.94 – 9015.93 crore.
The issue shall constitute approximately 18.18% of the fully diluted post-issue capital of REC. The issue closes on February 22, 2008 and the price band has been fixed at Rs 90 to Rs 105 per equity share of Rs 10 each.
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 meet the future capital requirements arising out of growth in its assets, primarily its loan and investment portfolio due to the growth of the Indian economy and for other general corporate purposes including meeting the expenses of the Issue. The company is seeking to strengthen its capital base to improve its borrowing capacity in order to support the future growth in its assets.
For FY07, the company reported income from operations at Rs 2651.6 crore as against Rs 2058.3 crore and profit after tax before extraordinary items at Rs 684.4 crore versus Rs 577.6 crore. Net profit stood at Rs 683 crore versus Rs 587 crore.
Source: Moneycontrol.com
Saturday, February 16, 2008
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