Rural Electrification Corp IPO
Rural Electrification Corp IPO — date, price band, lot size & details 2008
Rural Electrification Corp listed on 12 Mar 2008 at ₹129.9, 23.7% above the ₹105 issue price.
Rural Electrification Corporation (REC) is a government owned financial institution that funds power transmission, distribution and generation projects across India. Its total income was Rs 2,932.84 crore in FY2007.
Stock price
Rural Electrification Corp is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 19 Feb 2008
- Close 22 Feb 2008
- Allotment TBA
- Refund/credit TBA
- Listing 12 Mar 2008
Issue summary
The terms of the offer, as filed.
| IPO Dates | 19 to 22 Feb, 2008 |
|---|---|
| Price Band | ₹90 – ₹105 |
| Face Value | ₹10 |
| Lot Size | 60 Shares |
| Issue Size | ₹1639.26 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 6,300 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 60 shares at the ₹105 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 60 | ₹6,300 |
| Retail (max) | 31 | 1,860 | ₹1,95,300 |
| S-HNI (min) | 32 | 1,920 | ₹2,01,600 |
| S-HNI (max) | 158 | 9,480 | ₹9,95,400 |
| B-HNI (min) | 159 | 9,540 | ₹10,01,700 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total assets rose from Rs 24,270.51 crore in FY2005 to Rs 38,723.53 crore in September 2007.
- 02Net worth rose from Rs 2,610.57 crore in FY2005 to Rs 4,176.28 crore in September 2007.
- 03Restated profit after tax was Rs 522.87 crore in six months to September 2007.
- 04It is a key government lender to the power sector, operating since 1969; return on net worth was 21.08%.
Risks · 5
- 01Restated profit fell from Rs 2,021.86 crore in FY2005, which included large other income, to Rs 775.03 crore in FY2007.
- 02Its loans go mostly to state power utilities, so their finances drive its credit risk; total income was Rs 2,449.81 crore in FY2006.
- 03It lends with heavy borrowing; its loan funds were Rs 30,279.17 crore in FY2007.
- 04Rs 819.63 crore of the issue went to the government as an offer for sale.
- 05The government held 100% before the issue and 81.82% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Rural Electrification Corp offer document.
| Metric | 30 Sep 2007 | 31 Mar 2007 | 31 Mar 2006 | 31 Mar 2005 |
|---|---|---|---|---|
| Assets | 38,723.53 | 36,078.74 | 29,716.87 | 24,270.51 |
| Total Income | 1,791.74 | 2,932.84 | 2,449.81 | 3,655.95 |
| Profit After Tax | 522.87 | 775.03 | 807.90 | 2,021.86 |
| NET Worth | 4,176.28 | 3,682.71 | 3,123.28 | 2,610.57 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Rural Electrification Corp RHP.
Where the money goes
₹819.63 Cr of the issue is earmarked to named objects.
About the company
It is one of the leading public financial institutions in Indian power infrastructure and finances and promotes transmission, distribution and generation projects across India.
It began in 1969 to develop power infrastructure in rural areas, and its schemes have long aimed at extending and improving electricity supply in villages.
The IPO was Rs 1,639.26 crore, with Rs 819.63 crore of fresh issue and Rs 819.63 crore of offer for sale by the government, at Rs 105, the top of the Rs 90 to Rs 105 band. The fresh money was to add to its capital base.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Rural Electrification Corp IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
SBI Capital Markets Ltd.
141 issues handledBest listing: Bajaj Housing Finance (+114.3%). Weakest: ICICI Securities (-16.3%).
ICICI Securities
221 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Bannari Amman Spinning Mills (-25.2%).
HSBC InvestDirect Securities (India) Ltd
24 issues handledBest listing: Dishman Pharmaceuticals & Chemicals (+97.1%). Weakest: Bannari Amman Spinning Mills (-25.2%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Rural Electrification Corp?
The current Grey Market Premium is ₹0.
What is the Rural Electrification Corp IPO price band?
₹90 to ₹105, on a face value of ₹10.
When is the allotment?
The basis of allotment is TBA, with listing on 12 March 2008.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
