Mumbai, Apr 9 (PTI) Shares of Rural Electrification Corporation (REC) today jumped nearly 5 per cent, a day after the company received an overwhelming response to its share sale by the government.
The stock went up by 4.83 per cent to Rs 346 on the BSE. On the NSE, it rose by 4.93 per cent to Rs 346.60 in the noon trade.
The scrip has been holding up above the floor price of Rs 315 fixed for the 5 per cent REC Offer For Sale (OFS).
Kicking off its disinvestment programme for the current fiscal on a robust note, government yesterday mopped up over Rs 1,550 crore by selling 5 per cent stake in power sector lender REC in an OFS that was subscribed over 5.5 times.
With strong demand from retail and institutional investors, the issue received bids for over 27.31 crore shares as against 4.93 crore shares on offer, resulting in over- subscription of 5.53 times.
The REC issue received bids worth Rs 7,621 crore, with retail investors bidding for shares worth Rs 3,415 crore.
Institutional investors put in bids worth Rs 4,734 crore which include FII bids worth Rs 1,692 crore.
The portion reserved for retail investors, who got a 5 per cent discount, was subscribed 9.02 times. The general category portion was over-subscribed 4.66 times.