REC plans IPO by December
Rural Electrification Corporation plans to hit the capital market with its initial public offer amounting to 10% of its equity by December.india Updated: May 04, 2006 14:33 IST
State-run Rural Electrification Corporation said on Thursday that it plans to hit the capital market with its initial public offer amounting to 10 per cent of its equity by December this year.
"We are working on the IPO. We plan to hit the market by the end of this year," REC Chairman and Managing Director Anil K Lakhina told reporters on the sidelines of a conference.
Lakhina said the company was looking at selling 10 per cent of its equity. However, he did not say how much amount the company was expecting to raise through the issue.
REC, which primarily funds rural electrification projects in the country, posted a net profit of Rs 800 cr in 2004-05. The company has an authorised capital of Rs 1200 crore, paid up capital of Rs 800 crore and net worth of about Rs 3,800 crore.
REC is the latest power sector utility to consider coming out with the IPO. Another public sector company Power Finance Corporation is expected to come out with the IPO next month, while National Hydroelectric Power Corp and transmission utility Power Grid Corporation also plan to hit the market by the end of this year. So far, NTPC Ltd is the only public sector power company that is listed on the bourses.
The government has already given a go-ahead to sell five per cent equity in PFC along with its IPO. The government was likely to follow the same route in case of Power Grid and REC as well, though no decision had been taken so far, sources said.