State-run Rural Electrification Corporation (REC) today said it has received approval from the Power Ministry approval for its proposed follow-on public offer (FPO).
"The Ministry of Power...Has conveyed their approval for follow-on public offer of the Company of 17.17 crore equity shares of Rs 10 each constituting 20 per cent of the existing paid-up capital," REC said in a statement to the Bombay Stock Exchange (BSE).
The government recently offloaded its shares in energy PSUs-- Oil India (OIL) and NHPC-- and proposes to divest equity in another power major NTPC and Sutluj Jal Vidyut Nigam (SJVN).
REC's public offer is likely to hit markets by February next year and the company will approach market regulator Sebi by mid-December in this regard. At the end of September quarter, the government held a 81.82 per cent stake in the company.
Based on today's market price, REC could garner about Rs 3,725 crore through its proposed public offer of 20 per cent holding.
Shares of REC today closed at Rs 216.95, up 0.86 per cent from its previous close on the BSE.