Government will divest 5 per cent stake in Rural Electrification Corporation on Tuesday at Rs315 a share to mop up over Rs1,550 crore, marking the first disinvestment of the current fiscal. The floor price of Rs315 a share is at a discount of 2.07 per cent over the closing price of Rs321.65 a share.
The price for the offer for sale (OFS) of 4.93 crore REC shares was decided on Tuesday at a meeting headed by Finance Minister Arun Jaitley. The Floor Price of the Offer will be Rs315 per equity share, the company said in a filing to the BSE.
The offer will take place during trading hours on a separate window of the stock exchanges on April 8 between 9.15 am and 3.30 pm, REC said. REC scrip closed at Rs335.60, down 4.16 per cent on the BSE. The 5 per cent share sale would fetch over Rs1,552 crore to the exchequer.
As much as 20 per cent of the offer size would be reserved for retail investors, who can bid for shares worth Rs2 lakh. They would be offered shares at 5 per cent discount to issue price. Besides, 25 per cent of the offer would be alloted to mutual funds and insurance companies. REC would be the first PSU to hit the market in the current fiscal. The government has budgeted to raise Rs41,000 crore through minority stake sale in 2015-16.