REC stake sale today, govt to mop up Rs 1,550cr

Press Trust of India, New Delhi, April 7: Government will sell 5 per cent stake in Rural Electrification Corporation (REC) Wednesday 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 4.93cr REC shares was decided today at a meeting headed by finance minister Arun Jaitley. The Floor Price of the offer will be Rs 315 per equity share, the company said in a filing to the BSE. The offer will take place during trading hours at 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 1,552cr 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.