Rural Electrification Corporation (REC) public issue oversubscribed 1.83 times on the first day of its opening

New Delhi, Aug 31 : Rural Electrification Corporation (REC) public issue that opened on Friday was oversubscribed 1.83 times on the first day itself as per the NSE data. REC plans to raise Rs 1,000 crore, with an over-subscription option of Rs 2,500 crore. The issue closes on September 23 and is open for subscription in three tenures — 10 years, 15 years and 20 years.

The tax-free coupon rate on these bonds will be 8.01 per cent, 8.46 per cent and 8.37 per cent for 10 years, 15 years and 20 years, respectively. Retail investors will be offered the bonds at interest rates of 8.26 per cent, 8.71 per cent and 8.62 per cent, for 10 years, 15 years and 20 years, respectively.

“The private placement we did, at the same interest rates, was oversubscribed and hence, we expect good response to the tax-free bonds issue as well,” Rajeev Sharma, chairman and managing director of REC had said in a press conference