The state-run Rural Electrification Corporation, REC has touched an intraday high/low of 129.90 and Rs 118.75, before closing the day at Rs 120.25, up by Rs 15.25 or 14.52% on the NSE. It traded with volumes of 11,16,71,336 shares and turnover was at Rs 1,364 crore.
Uma Shankar, Chairman, REC said that the company is likely to hold on to their current costs and margins and added that they expect to see continued growth of 25-30%. Shankar said REC will continue to maintain its past CAGR growth going ahead.
In an exclusive interview with CNBC-TV18, Shankar said that their ECB application was with the RBI and that they expect a favourable outcome. He added that they don’t anticipate a rise in the cost of borrowings which currently stands at 6.7%.
Shankar expects the company to have 25-30% profitability in the coming years. He said that REC is expecting business worth Rs 1.35 lakh crore over the next five years and added that higher volumes will ensure that profitability is maintained.
It had come out with an initial public offer of 15.61 crore shares of Rs 10 each and the issue got subscribed by 27.91 tio mes.
Source: Moneycontrol.com
Showing posts with label Rural Electr Corp IPO. Show all posts
Showing posts with label Rural Electr Corp IPO. Show all posts
Wednesday, March 12, 2008
Tuesday, March 11, 2008
Rural Electr Corp to list on March 12
The state-run Rural Electrification Corporation, REC will list on the bourses with equity shares on Wednesday, March 12, 2008. It has been fixed issue price of Rs 105 per share for its initial public offer of 15.61 crore shares of Rs 10 each. The issue generated a demand for over Rs 45,000 crore and got subscribed by 27.91 times.
The price band was between Rs 90-105 per share. The QIB portion was subscribed 39 times, HNI 27 times and retail 8 times. The employee portion was also fully subscribed demonstrating the interest it has generated.
The issue constitutes approximately 18.18% of the fully diluted post-issue capital of REC. IL & FS Investsmart Securities Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the Issue.
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.
Source: Moneycontrol.com
The price band was between Rs 90-105 per share. The QIB portion was subscribed 39 times, HNI 27 times and retail 8 times. The employee portion was also fully subscribed demonstrating the interest it has generated.
The issue constitutes approximately 18.18% of the fully diluted post-issue capital of REC. IL & FS Investsmart Securities Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the Issue.
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.
Source: Moneycontrol.com
Saturday, February 16, 2008
Apply for Rural Electr Corp IPO
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
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
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