Rural Electrification Corporation said that its proposed follow on public offer is likely to hit the market by February 2010.

Mr Uma Shankar CMD of REC on the sidelines of the Economic Editor’s conference told reporters that “We would file the Draft Red Herring Prospectus with SEBI by mid December and the FPO is likely to hit the market by February next year.”

He said that the offering entails a 15% fresh equity issue and 5 per cent disinvestment by the Government. The company plans to utilise the proceeds from the FPO for financing power projects. The price band of the offer would be decided by the Empowered Group of Ministers headed by the Finance Minister.

After the FPO, the Government’s stake in the company would come down to 66.8% from the current 81.82%.

(Sourced from Business Line)