Rural Electrification Corporation Ltd FPO (REC FPO) Detail

Incorporated in 1969, Rural Electrification Corporation Limited (REC) is one of the leading public financial institutions in Indian power infrastructure. They are engaged in the financing and promotion of transmission, distribution and generation projects throughout India.

REC provides funding to their clients and assist them in formulating and implementing various types of power project-related schemes. Clients include public sector power utilities at the central and state levels and private sector power utilities. Additionally, they fund power projects for their joint sector clients. Their financial products primarily include long-term loans, short-term loans, bridge loans and debt refinancing.

REC have contributed to the development of rural India and India's agriculture through our funding of transmission and distribution projects in rural areas. For Fiscal 2009, more than half of their loan sanctions related to generation projects and generation-related loan assets currently comprise more than a third of their total loan assets. In September 2009, their mandate was further extended to include financing other activities with linkages to power projects, such as coal and other mining activities, fuel supply arrangements for the power sector and other power-related infrastructure.

As of September 30, 2009, they are one of only 18 India public sector undertakings to be granted “Navratna” status by the Department of Public Enterprise by virtue of our operational efficiency and financial strength. The GoI has rated their performance as “Excellent” continuously since Fiscal 1994.

The current offering (FPO) shall constitute 17.39% of the fully diluted Post Issue capital of the company and the Net Issue shall constitute 17.36% of the fully diluted Post Issue capital of the company. The government holding will be reduced to 66.80% post issue.