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| REC follow-on offer on Feb 19 |
| Press Trust of India / Mumbai Jan 28, 2010, 18:54 IST |
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State-run Rural Electrification Corporation's (REC) follow-on public offer (FPO), through which the government plans to divest 20 per cent stake, would open on February 19.
According to the draft red herring prospectus filed with the Sebi, the issue would close on February 23.
At today's closing price of Rs 242.75 on the Bombay Stock Exchange, the FPO of 17,17,32,000 equity shares would raise over Rs 4,100 crore.
The offer would comprise five per cent stake dilution by the government and issuance of 15 per cent fresh equity.
Post-FPO, the government's share in REC would come down to nearly 66 per cent from present 81.82 per cent.
The company, engaged in financing power projects, had posted 48.58 per cent jump in net profit at Rs 474 crore for the quarter ended December 31, 2009.
Besides REC, the government plans to sell its stake in NTPC, NMDC and Satluj Jal Vidyut Nigam by March-end.
The FPO of the country's largest power producer NTPC would open on February 3 and closes on February 5.
The Cabinet has also given clearance for further selloff in Engineers India, which is likely to happen next fiscal.
The Disinvestment Department of the Finance Ministry is also is discussion with BSNL, Coal India and SAIL for government's stake sell in the next fiscal.
The Cabinet had earlier asked all listed profitable CPSUs to have public holding of at least 10 per cent. It had also asked profitable unlisted PSUs to hit the capital markets.
The government has already divested its stake in OIL India and NHPC in the current fiscal.
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