REC Ltd IPO

Closed

IPO Synopsis

Public issue of 171,732,000 equity shares of face value of Rs. 10 each (equity shares) of Rural Electrification Corporation Limited (the Company or the Issuer) for cash at a prices determined through the alternate book building method under part D of schedule XI of the Securities and Exchange Board of India (Issue of capital and disclosure requirements) regulations, 2009, as amended (The SEBI Regulations) aggregating up to Rs. 3529.94 crores (the Issue) consisting of a fresh issue of 128,799,000 equity shares by the company (Fresh Issue) and an offer for sale of 42,933,000 equity shares (Offer for Sale) by the President of India, acting through the ministry of power, Government of India (the Selling Shareholder). The Issue comprises a net issue of 171,382,000 equity shares to the public (net issue) and a reservation of 350,000 equity shares for subscription by eligible employees (the employee reservation portion). The issue shall constitute 17.39% of the fully diluted post-issue capital of the company and the net issue shall constitute 17.36% of the fully diluted post-issue capital of the company. The Face value of the equity share is Rs. 10 each The Floor price (For Bids submitted by non-institutional bidders and retail individual bidders) is Rs. 203 per equity share of face value of Rs. 10/- each The Floor price is 20.3 times of the face value. The Clearing price (For Bids submitted by qualified institutional buyers, including mutual funds) is Rs. 206 per equity share. The Employee price (For Bids submitted by eligible employees under the employee reservation portion) is Rs. 193 per equity share.

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

    Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

For details about the new IPO application process, click here.

To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
  • Go to the Current IPOs section
  • Select the IPO you wish to apply for
  • Enter IPO details like price, quantity (lots) and your UPI ID
  • Check details and Confirm
  • Approve the UPI notification received on your phone (in BHIM App or your net banking app)

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

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