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The company has posted a 48.7% rise in net profit for the quarter ended December 2009 on the back of loan disbursements. Net profit of Rs 474 crore was registered in the three months ended December compared with Rs 318.6 crore posted in the corresponding period in the previous year.

IPO of Rural Electrification Corporation (REC) got subscribed by over 14 times of the issue size, as per the data available with the NSE at 1400 hrs. The IPO received bids for 219.65 crore equity shares, against 15.61 crore shares on offer. The issue, expected to raise Rs 1,640 crore, closes for subscription on Friday. The company's maiden public offer got subscribed 4.13 times of the issue size till yesterday, with most of the bids pouring in from institutional investors. REC has fixed the price band for the issue at Rs 90-105.

REC: Invest at cut-off (The Hindu Business Line 19th Feb 2008) REC’s robust financial profile and attractive pricing make this offer commendable to investors. Investors can subscribe to the initial public offering of shares by Rural Electrification Corporation (REC) at the cut-off price. REC’s business is sharply focussed and the company has a robust financial profile despite difficult clients such as State electricity boards (SEB) and other power utilities. Importantly, at Rs 90-105, the offer is priced attractively and leaves enough on the table for investors in the medium term. Investors should not subscribe in anticipation of listing returns. REC’s original mandate was to enable electrification of Rural India through financing of transmission and distribution (T&D) projects and the energisation of agricultural pumpsets. However, the company has now evolved to finance all segments of the power sector throughout the country, including generation projects. The company’s clients ar...

Conflicting signals from govt ahead of REC initial public offer (Live mint.com 14th Feb 2008)Key functionaries of the government, which owns Rural Electrification Corp. Ltd (REC), sent out conflicting signals about the company’s planned share sale in the wake of uncertainties in the markets that have already scuttled two recent, high-profile initial public offerings (IPOs)—those of developer Emaar MGF Land Ltd and health-care firm Wockhardt Hospitals Ltd. While Union power minister Sushil Kumar Shinde said the government would “watch the market for the next two-three days” before taking a decision, power secretary Anil Razdan said the government was “not considering any postponement” of the issue. Shinde did not elaborate on the government’s possible course of action, but said he was not denying the possibility of extending the dates of the IPO. “We will examine whether the time is right for the issue.” REC is one of the country’s largest lenders to the power sector. It plans to sell ...

Rural Electrification Corp IPO to raise up to Rs 1,640 cr (The Hindu Business Line 8th Feb 2008)State-owned Rural Electrification Corporation proposes to raise up to Rs 1,640 crore through an initial public offering of 15.61 crore equity shares. The IPO opens on February 19 and closes on February 22. The price band has been set at Rs 90-105. At the lower end of the band, the company will raise Rs 1,400 crore and at the cap Rs 1,640 crore. Half of the shares on offer constitute a fresh offer of equity while the other half is being divested by the Government. There is a reservation of 39 lakh shares for employees at issue price. The offer constitutes 18.1 per cent of the company’s post issue paid-up capital, said Mr Anil Kumar Lakhina, Chairman & Managing Director, at a news conference on Thursday. REC is a State-owned ‘mini-Ratna’ company. It lends to power projects, chiefly to State-owned power units but also to private companies, in transmission and distribution, power generation,...

Rural Electrification Corporation (REC) a state run power sector lending institution , is likely to hit the capital market by the third week of this month. The price band of its IPO is expected to be in Rs 90 - Rs 105 band. REC is estimated to raise about Rs 1,200 crore through the IPO by offering 15.61 crore shares, which includes about 39 lakh shares reserved for the employees.