REC shares rise 22% on debut

Rural Electrification Corporation, the state-owned lender to power projects in India's villages, rose as much as 22 per cent on its trading debut in Mumbai as investors bet the company will benefit from the government's $7 billion investment plan.

The company gained 17 per cent to Rs 121.65 at 3:21 p.m. in Mumbai after rising as high as Rs 128.4. The lender raised as much as $405 million in its initial offering, selling 156.1 million shares at Rs 105 apiece.

Rural Electrification is among five companies that have gained on listing this year after 24 initial offerings in India, where the benchmark stock index has fallen 20 per cent in 2008.