Thursday, February 14, 2008


Type of Issue : Book Built
Issue Opens: 19 February, 2008
Issue Closes: 22 February, 2008

Issue Size : 156,120,000 Shares

Lower Price Band: Rs.90
Upper Price Band: Rs.105
Total Issue Size: Rs.1,639 Crores

Application Multiple: 60 and in multiples there off starting with atleast 60 shares.

Maximum Shares: 700(for Retail)

Information URL :
Prospectus URL :

Company Details :


Tel : 91-11-24365161
Fax : 91-11-24360644

Email :

ISSUE Description:

Rural Electrification Corporation (REC) is one of the leading public financial institutions in Indian Power infrastructure. REC is engaged in financing and promotion in the of transmission, distribution and generation projects throughout India. Its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.

REC provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its Corporate Office located at New Delhi and 17 field units (Project Offices), which are located in most of the States.

The Project Offices in the States coordinate the programmes of REC’s financing with the concerned SEBs/State Power Utilities and facilitate in formulation of schemes, loan sanction and disbursement and implementation of schemes by the concerned SEBs/State Power Utilities. REC also funds power projects for their joint sector clients.

REC’s loan sanctions and loan disbursements have grown at a CAGR of 28.37% and 13.51% respectively. REC’s overall cost of funds was as low as 6.55% (which arises out of the Section 54EC-Capital Gains Tax, given solely to REC). This enables them to deliver debt financing at competitive rates.
REC has been ranked amongst the top ten public sector undertakings in India. The GOI shareholding will be 81.82% of the diluted post issue paid up equity capital of Company.

Object of the Issue:

To augment capital base to meet the company’s future capital requirements arising out of growth in its business.

Key Financials for the year ended September 30, 2007
Revenue Rs.17,917.38Mln, PAT Rs.5,228.66Mln,
Key Financials for the year ended March 31, 2007
Revenue Rs.29,328.35Mln, PAT Rs.7,764.66Mln,
EPS Rs.9.95, RoNW21.08%