REC's FPO gets govt approval

Government on Thursday approved Rural Electrification Corporation's proposal for follow-on- public offer for divesting 20% in state-run
company. "(The) Cabinet Committee on Economic Affairs on Thursday approved 5% offloading of government's stake as well as infusion of 15% fresh equity in Rural Electrification Corporation," home minister P Chidambaram said. However, the minister did not specify the timeframe for the FPO. He merely said "this will be done at an appropriate time." Going by current market prices, 20% FPO would fetch Rs 3,200-3,500 crore. After the FPO, the government's stake would come down to 66.8% from the current 81.8%. REC which finances and promotes rural power projects across the country, would offer part of the shares to its employees.

POSTED BY :-
SHWETA RANI
PGDM-3rd sem