Mumbai: Shares of Rural Electrification Corporation rose by over 3 per cent today as the government’s sale of 5 per cent stake in the state-run firm got subscribed over five times. The stock settled the day with a gain of 2.61 per cent at Rs 330.05 on the BSE. During the day, it rose by 3.83 per cent to Rs 334.
At the NSE, it went up by 3.04 per cent to end the trade at Rs 331. Government’s ambitious divestment programme for the current fiscal began on a strong note today, with the sale of 5 per cent stake in state-run REC getting subscribed over five times, fetching an estimated Rs 1,550 crore to the exchequer. On strong institutional and retail demand, bids were received for over 25.24 crore shares as against 4.93 crore shares on offer, resulting in over-subscription of 5.11 times.
At the floor price of Rs 315 apiece, the government would raise over Rs 1,550 crore from the Offer For Sale (OFS). The share sale received strong response from retail and institutional investors and was fully subscribed within an hour of its opening.
Government holds 65.64 per cent stake in REC.
