Rural Electrification Corporation (REC) has dropped in early trades on dissapointing FPO price.
The stock opened at Rs 210 and touched a high of Rs 214. Thereafter it slipped 4.6% to a low of Rs 205. The stock is now down 4% at Rs 212. Over 129,000 shares have been traded on the BSE so far, as against the two-week daily trade average of 194,000 shares.
The government has set a base price of Rs 203 a share, a 7.8% discount to the current market price, for the follow-on public offer (FPO) of the company.
The government-owned power project financier plans to sell 171.7 million shares, including fresh issue of 128.7 million shares, which will result in an equity dilution of 17.39 per cent. The issue opens on February 19 and closes on February 23.
