REC debuts at 24% premium on NSE; ended day at 15%

State-run Rural Electrification Corporation (REC) got listed at Rs 129.90 on the National Stock Exchange (NSE) with a premium of Rs 25 or 24 per cent over its issue price of Rs 105 on Wednesday.

On the Bombay Stock Exchange (BSE), the scrip got listed at Rs 125, with a premium of 19 per cent over its issue price.

The company, which hit the capital market with 15.62 crore equity shares on February 19, raised Rs 1,640 crore. The company had set the IPO price band at Rs 90-105 and the issue got oversubscribed 27 times.

REC is a public financial institution engaged in the financing and promotion of transmission, distribution and generation projects throughout India.

The company proposes to utilize the net proceeds from the fresh issue to augment its capital base to meet future capital requirement of improved business.

The stock registered 15% gain at the end of the day. It closed at Rs 121 on NSE. The total volume of shares traded was 109,895,430.

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