First Central Public Sector Enterprises - Disinvestment - Rural Electrification Corporation (REC) for the year 2015-16

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....irst Central Public Sector Enterprises - Disinvestment - Rural Electrification Corporation (REC) for the year 2015-16 <br>News and Press Release<br>Dated:- 9-4-2015<br><BR>A Record 902% Oversubscription Amounting to &#8377; 2887 Crore; FII Participation Stood at Impressive &#8377; 1692 Crore or 20.71% of the Subscribed Amount The First CPSE disinvestment for the fiscal year 2015-16 got off to a ....

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....thumping start today with the Rural Electrification Corporation (REC) OFS getting fully subscribed within one and a half hour of opening. On offer was 5% paid-up capital of the company comprising 4, 93, 72,950 shares, each of Face Value of &#8377; 10. Out of the shares offered for sale, 20% were reserved for retail investors i.e. those investors who placed bids for shares of total value of not m....

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....ore than &#8377; 2.00 lakh. In addition, a 5% discount was also offered to retail investors on price bid. With this disinvestment, the Governemnt of India share in REC will come down to 60.64%. At the end of the day with total subscription of &#8377; 7621 crore, the issue stood oversubscribed by 553%, the highest ever for an OFS. The investor enthusiasm for the issue is borne out by the fact....

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.... that the indicative price for retail was &#8377; 325.10 and for institutions &#8377; 324.73 both above the previous day (7/4/2015) closing price of &#8377; 321.65 and floor price of &#8377; 315. Seldom, if ever, has such an upward spiral been registered by an OFS. The highlight of the issue has been the overwhelming retail investor participation, a record 902% oversubscription amounting to &#83....

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....77; 2887 crore. If we add retail bids through Mutual Funds then with &#8377; 528 crores, the total amount subscribed by retail investors adds up to &#8377; 3415. Significantly against a discount of 5.3% to the last traded price for the previous REC transaction in the 2010 FPO, the discount this time was only 2.1% The OFS has been equally strongly endorsed by the institutional investors. At &#837....

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....7; 4734 crore, it was oversubscribed by 466%, once again the highest ever for an OFS. The FIIs participation stood at impressive &#8377; 1692 crore or 20.71% of the subscribed amount.<BR> News - Press release - PIB....