Carrying forward its disinvestment programme, the government today approved part sale of its stake in Rural Electrification Corporation Ltd (REC), the state-owned lender to power generation projects.
REC will raise 15 per cent of its paid-up equity as fresh equity, while the government will disinvest 5 per cent of its holding in the company, Home Minister P Chidambaram announced after a meeting of the Cabinet Committee on Economic Affairs. The follow-on issue is likely to fetch around Rs 3,200 crore-Rs 3,500 crore at the current market price.
