Rural Electrification Corp gains 15.5 pc over issue price
Shares of state-run REC, which debuted on the bourses on Wednesday, closes with a gain of 15.5 pc above the public issue price of Rs 105.business Updated: Mar 12, 2008 18:58 IST
Shares of state-run Rural Electrification Corp, which debuted on the bourses on Wednesday, closed with a gain of 15.5 per cent above the public issue price of Rs 105, giving it a market value of over Rs 10,000 crore.
After listing at a price of Rs 125 a share this morning at the BSE, attracting a premium of 19 per cent over the issue price, the shares ended the day at Rs 121.20.
This puts the power sector lender's market capitalisation at about Rs 10,300 crore, catapulting it to the list of the country's 100 most valued firms on the very first day of its trading.
REC was the most-traded stock at both BSE and NSE with close to 18 crore shares changing hands at the two bourses. At the BSE, a total of 6.75 crore shares were traded, while total traded volume was about 11.2 crore. In terms of value, shares worth over Rs 2,000 crore were traded at the two exchanges.
The shares rose to as high as Rs 128.4 at the BSE before paring some of the intra-day gains. At the NSE, the shares closed at Rs 121.30 after opening at its intra-day high of Rs 129.90.
The stock hit intra-day lows of Rs 118.75 at the NSE and Rs 118.85 at the BSE, which were well above the issue price.
Market analysts said REC has made a decent debut given the ongoing turbulence in the stock market that has dented some high-profile IPOs such as Reliance Power in the recent past.
Reliance Power had closed at a discount of about 14 per cent of its offer price of Rs 450 per share on listing on February 11 despite a huge demand seen for the shares in the IPO. In January, Reliance Power had raised close to Rs 11,500 crore in the country's biggest ever IPO that was subscribed more than 72 times.