REC IPO subscribed 28 times

REC IPO subscribed 28 times Generating a demand for over Rs 45,000 crore despite a highly volatile market condition, the IPO of the state-run Rural Electrification Corporation (REC) got subscribed by 27.91 times, as per NSE website. The issue has received bids for 435.68 crore shares against 15.61 crore shares on offer in the price band Rs 90-105 per share. The IPO generated excellent response from across the board. The QIB portion was subscribed 39 times, HNI 27 times and retail 8 times. The employee portion was also fully subscribed demonstrating the interest it has generated. Subscription details Investors Times Qualified institutional buyers 39.30 Non institutional investors 27.12 Retail individual investors 7.68 Employee Reservation 0.94 Total 27.91 The Issue constitutes approximately 18.18% of the fully diluted post-issue capital of REC. IL & FS Investsmart Securities Limited, ICICI Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the Issue. The Company proposes to utilize the net proceeds from the fresh issue to augment its capital base to improve its borrowing capacity in order to support the future growth in its assets. The government's Eleventh Plan (2008-2012) anticipates a substantial increase in the country's power capacity. The Ministry of Power's data shows that India's power generation system, as on March 31, 2007, had a total installed capacity of 132,330 MW and an additional 78,577MW are required to meet the projected demand during the plan period. Thus, the overall fund requirement by 2012 for the sector has been estimated at a whopping Rs 10,316,000 million.