REC IPO subscribed 28 times

At a time when investors were shying away from initial share offerings after the Reliance Power IPO fiasco last month, public sector company Rural Electrification Corporation (REC) created a sensation by receiving bids worth nearly 28 times its issue size.

Kochi-based V-Guard's IPO was the first issue to go through smoothly after the market crash forced three companies - Emaar MGF, Wockhardt Hospitals and SVEC Constructions - to withdraw their public issues.

REC is offering 156.12 million shares through the IPO at a price band of Rs 90-105 apiece. According to the latest figures, the retail portion of the issue was subscribed by over four times, while the non institutional or the high net-worth individual quota was subscribed by over seven times.

The Qualified Institutional Bidders (QIB) segment was subscribed by over 33 times. At nearly 28 times the issue size, the IPO has received bids worth nearly Rs 45,000 crore.