REC IPO subscribed 2.73 times

REC IPO subscribed 2.73 times

MUMBAI: The maiden public offer of state-run power firm REC got subscribed nearly three times of the issue size on its second day on Wednesday.

The REC IPO saw bids pouring in for over 42.60 crore equity shares on the second day of the IPO as against a total 15.61 crore shares on offer. The four-day book building process would be complete on February 22.

Most of the bids today came from the institutional investors that made the portion reserved for Qualified Institutional Buyers (QIBs) getting subscribed 4.52 times.

While the portion reserved for non-institutional and retail investors remained under-subscribed. However, no bids have so far come from the mutual funds.

REC is looking to raise about Rs 1,640 crore through sale of equity shares in a price band of Rs 90-105. The mini-ratna company aims to increase its annual disbursement to Rs 1,00,000-1,20,000 crore over the next five years to garner 20 per cent market share in power sector financing, whose size has been pegged at Rs 6,00,000 crore in the 11th Plan Period.

Further, the IPO of electrical equipment maker V-Guard got subscribed 1.36 times till the third day of offer today. According to the latest data available on the NSE, the issue received bids for over 1.08 crore shares against 80 lakh shares on offer.

Portion reserved for QIBs got subscribed 1.65 times and the non-institutional investors section got bids 1.76 times.
The price band for the issue, which would close tomorrow, has been fixed between Rs 80 and 85. The Kerala-based company plans to raise about Rs 70 crore from the capital market.

The public issue was aimed at raising funds to augment production capacity, enhance the R&D facilities and to strengthen the market presence of V-Guard products.