New Delhi : The government will sell 5% stake in Rural Electrification Corporation today at Rs 315 a share to mop up over Rs 1,550 crore, marking the first disinvestment of the current fiscal. The floor price of Rs 315 a share is at a discount of 2.07 per cent over the closing price of Rs 321.65 a share.
The price for the offer for sale (OFS) of 4.93 crore REC shares was decided at a meeting headed by Finance Minister Arun Jaitley.
The government currently holds 65.64% stake in REC. The offer for sale, which will mark the first disinvestment for the government in the new financial year started Apr 1, will take place during trading hours on a separate window of the stock exchanges on April 8 between 9.15 am and 3.30 pm, REC said.
REC scrip closed at Rs 335.60, down 4.16 per cent on the BSE.
The 5 per cent share sale would fetch over Rs 1,552 crore to the exchequer.
As much as 20 per cent of the offer size would be reserved for retail investors, who can bid for shares worth Rs 2 lakh. They would be offered shares at 5 per cent discount to issue price.
The government has budgeted to raise Rs 41,000 crore through minority stake sale in 2015-16.
In 2014-15, government had raised about Rs 24,500 crore through disinvestment.
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RBI policy fails to cheer mkts
After flipping between positive and negative zones, the benchmark BSE Sensex settled with a marginal rise of 12 points at 28,516.59 as the RBI policy was bereftof a positive surprise. Shares of IDFC, Axis Bank, ICICI Bank, State Bank of India, Kotak Mahindra Bank, and YES Bank ended down 0.6-2.2%. After rising 5-25% higher on Monday, shares in the real estate pack like Unitech declined on profit booking. Among the gainers were shares of metal and power firms.
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