Rural Electrification Corporation Ltd. IPO Message Board (Page 58)

Article in Economic Times


NEW DELHI: Prime lender to the power sector Rural Electrification Corp, which will hit the capital market with a public issue this week, is seeking to partner an infrastructure firm to enter electricity distribution segment.

The company had last year floated a wholly-owned subsidiary - REC Power Distribution Company Ltd (RPDCL) - to promote and develop distribution systems. However, the subsidiary is proposed to be converted into a joint venture to enable REC diversify its range of offerings.

In its red herring prospectus, REC said: "RPDCL is considering conversion of its status from a wholly-owned subsidiary into a joint venture company with another infrastructure and finance company and its affiliates to increase the scope of its activities including setting up of decentralised distribution generation going."

As per the document, the authorised share capital of RPDCL is also proposed to be raised to Rs 1,000 crore from the present Rs 20 crore. The proposals are subject to approval of shareholders of REC, RPDCL and the Power Ministry.

REC is one of the two leading public financial institutions in Indian power sector. REC and state-run Power Finance Corp provide financing and consulting services for development of power projects in the country.

Its arm RPDCL has been appointed as the nodal agency by Punjab State Electricity Board for selecting a developer for a proposed 1,800 MW power project. The company will get Rs 12.5 crore for this assignment.

Besides, RPDCL has also entered into an agreement with Jodhpur Vitran Nigam Ltd for supervision and inspection of village electrification work under the Rajiv Gandhi Grameen Vidyuthikaran Yojana (RGGVY).

Hi Bharat Singhal(179),Plz let me know ,how do u predict these values ???

The fair value of the share as of FY07 earnings is between 66/- to 68/- per share and if we we look at FY10 foraward earnings, the fair value would be around Rs.140. So don't expect any appreciable listing gains, but if you are a long term investor, go aheahead.

REC BEING AN IPO OF GOVT. SECTOR LIKE POWERGRID IT WILL GIVE MORE THAN 100% PREMIUM....................................

REC IS A WONDERFUL RETURN GIVING IPO. MUST APPLY..........

Apply karlo bhai!! Yeh govt ka company hai. Won't cheat you out of your pants like all the bakwas private sector ipos viz reliance, wockhardt, emaar etc. Kam se kam sarkar par to bharosa hai mujhe.

do not apply may get full allotment
let the markets stabilise
chances r that prevailing bad sentiments may pull off investors
u will get better ipos after this why take a risk
can buy power grid blindly at present rates
will get atleast 40 % returns in one month

Dear ALL,
Reliance Power bonus issue market will again boost.....
Apply in REC GP is 35 to 40
Must Apply Issue
best of luck

planning to apply in full !!! hope my decision is right..pls. advise friends.

APPLLLLLLLLLLLY REC ISSUE GREY MARKET WILL IMPROVE THIS IS GOVT COMPANY ...NO AMBANI IS BUYING IN GREY MARKET LIKE RELIANCE POWER

dont apply as lulla singh advise me sab choor hen

AT LEAST 3/4 LOTS,AS GOT INFORMATION GMP PRESENTLY 50+.

Power Finance Corp is around Rs.180 - and you are getting this
at Rs.105 - so it's very raesonable to apply.
Hope this should be great --apply apply apply...

COMPARE RELIANCE POWER WITH RURAL ELECTRIFICATION
REPL WITH RECL
REPL-MARKET WENT DOWN WHEN IT ARRIVED IN MARKET AND CRASHED AFTER LISTING.
RECL-MARKET STARTED TO RECOVER WHEN IT'S OPENING AND WILL ZOOM WHEN IT LIST (GUESS).
WILL APPLY.

Think not once, not twice, ... but several times and recall the experience baout high priced IPOs. REC is one of such IPOs.
Government babus (IAS officers) are have failed to take the recent collaps of the market into account while deciding on the pricing of REC IPO.
Several IPOs of the Govt. companies in recent past (whem made under bearish conditions) had gone much below the issue price. Conditions are similar now.
So think several times ... before investing in this IPO.
Your hard earned money can better be put in some tax saving schemes.

Please think again who r not going to apply to this IPO will miss the big opportunity

market sentimate is good so apply

i will apply .Bija bhale na bhare

nice issue dont worry

apply up to one lac