REC to allot FPO shares for QIBs at Rs 206 each

Rural Electrification Corporation will allot shares through its follow-on public offer at Rs 206 per piece to qualified institutional buyers (QIBs), which includes foreign institutional investors and mutual funds. The state-run power financing firm has fixed the clearing price for qualified institutional investors at Rs 206 a share and for the company's employees at Rs 193 per piece, REC said in a public announcement today. REC had hit the markets with its public issue of 17.17 crore shares at a floor price of Rs 203 per piece. The company will allot shares to non-institutional and retail individual buyers at the floor price. The Rs 3,529.94-crore follow-on public offer was open for subscription between February 19 to February 23. The FPO of REC was subscribed 3.12 times on good demand from institutional investors, even as retail investors cold- shouldered it. The public issue constitutes 17.39 per cent stake in the company. Kotak Mahindra Capital Company, BofA Merrill Lynch, ICICI Securities, JM Financial and RBS Equities (India) are the book running lead managers to the issue. On the National Stock Exchange (NSE), the shares of REC were quoting at Rs 238.45, down 1.89 per cent in noon trade.