REC stake sale News

The government is expected to garner around Rs 15,000 crore from this sale process.

Shares of Rural Electrification Corporation (REC) Thursday ended nearly two percent higher, a day after the company received an overwhelming response to its share sale by the government.

The government is looking to raise Rs 1,550 crore from sale of 4.93 crore shares in Rural Electrification Corp (REC) through a one-day OFS route at a floor price of Rs 315 apiece.

The floor price of Rs 315 a share is at a discount of 2.07 percent over the closing price of Rs 321.65 a share.

Government will sell 5 percent stake in Rural Electrification Corporation Wednesday at Rs 315 a share to mop up over Rs 1,550 crore, marking the first disinvestment of the current fiscal.

The government plans to sell 5 percent of its stake in the company tomorrow to mop up close to Rs 1,600 crore.

"The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence on April 8," REC said in a filing to the BSE.

As many as 12 merchant bankers have bid for managing the stake sale of REC.