REC IPO Details

Issue Open Feb 19, 2008
Issue Close Feb 22, 2008
IPO Price ₹105
Face Value ₹10
IPO Size ₹1,639.26 Cr
Listing At BSE, NSE
IPO Lot Size 60

Not for release in tha United States of America. Not for distribution In Australia, Canada or Japan.

Rural Electrification Corporation Limited

A Government of India Enterprise

(Incorporated on July 25,1969 under the Companies Act, 1956 as a private limited company. The word private was deleted from the name of the Company on June 3,1970. The Company became a deemed public limited company with effect from July 1, 1975. The Company converted Into a public limited company with effect from July 18,2003)
Registered and Corporate Office: Core 4, SCOPE Complex, 7, Lodhl Road, New Delhi 110 003, Tel: +91 11 2436 7305. Fax: +91 11 2436 2039. E-mail: ipo@recl.nic.in. Website: www.recindia.nic.in

BASIS OF ALLOTMENT

PUBLIC ISSUE OF 156,120,000 EQUITY SHARES OF RS. 10 EACH FOR CASH AT A PRICE OF RS 105 PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 95 PER EQUITY SHARE, AGGREGATING RS. 16392.6 MILLION (THE "ISSUE") BY RURAL ELECTRIFICATION CORPORATION LIMITED (THE "COMPANY OR "THE ISSUER"). THE ISSUE COMPRISED A RESERVATION OF UP TO 3,903,000 EQUITY SHARES OF RS. 10 EACH FOR ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE WILL CONSTITUTE 18.18% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE COMPANY.

THE FACE VALUE PER EQUITY SHARE IS RS.10. THE ISSUE PRICE PER EQUITY SHARE IS RS.105 AND IT IS 10.5 TIMES THE FACEVALUE.

The Issue was made through the 100% Book Building Process wherein at least 60% of the Net Issue was to be allocated on a proportionate basis to Qualified Institutional. Buyers ("QIBs") (including 5% of the QIB portion that was to specifically be allotted to Mutual Funds). Further, up to 10% of the Issue was to be available for allocation on a proportionate basis to Non-Institutional Bidders and up to 30% of the Issue was to be available for allocation on a proportionate basis to Retail Bidders, subject to valid Bids being received at or above the Issue Price.

The Issue received 753,768 applications for 4,271,403,354 Equity Shares resulting In 27.35 times subscription. The details of the applications received In the Issue from QIBs, Non-Institutional Investors, Retail Individual Investors and Eligible Employees are as under: (Before technical rejections)

Category Number of Applications Number of Shares No. of times subscription
Qualified Institutional Bidders 333 359,09,01 39.3
Non Institutional Investors 1,849 33,31,43,920 21.88
Retail Individual Investors 7,51,074 34,38,18,434 7.52
Eligible Employees 512 35,39,700 0.90

Final Demand
A sample of the final demand at different Bid prices is as under:

Bid Price No. of
Equity Shares
% to
Total
Cumulative
Total
Cumulative%
to total
90 306,788,760 7.04 4,356,340,860 100.00
91 5,160 0.00 4,049,552,100 92.96
92 36,480 0.00 4,049,546,940 92.96
93 1,200 0.00 4,049,510,460 92.96
94 6,840 0.00 4,049,509,260 92.96
95 4,560,720 0.10 4,049,502,420 92.96
96 7,980 0.00 4,044,941,700 92.85
97 500,760 0.01 4,044,933,720 92.85
98 92,220 0.00 4,044,432,960 92.84
99 3,120 0.00 4,044,340,740 92.84
100 3,696,900 0.08 4,044,337,620 92.84
101 9,660 0.00 4,040,640,720 92.75
102 24,360 0.00 4,040,631,060 92.75
103 5,700 0.00 4,040,606,700 92.75
104 40,800 0.00 4,040,601,000 92.75
105(Cut Off Price) 4,040,560,200 92.75 4,040,560,200 92.75

The Basis of Allocation was finalized in consultation with the National Stock Exchange of India Limited ("NSE") on March 5, 2008.

A. Allocation to Eligible Employees (After Technical Rejections)
The Basis of Allocation to the Eligible Employees, who Bid at Cut Off Price or at the Issue Price of Rs.105 per Equity Share, was finalized in consultation with the NSE. The category was subscribed to the extent of 0.905304 times. The spill over portion of 369,600 Equity Shares has been added to QIB / HNI / Retail categories in the ratio of 60/10/30 basis. The total number of Equity Shares allotted in this category is 35,33,400 Equity Shares to 510 successful applicants. The category-wise details of the Basis of Allocation sample are as under:

Category No. of
Applns.
% to
total
Total No. of
Equity shares
applied
% to
total
No. of
Equity Shares
allocated
Ratio Total No. of
of Equity
shares
allocated
120 4 0.78 480 0.01 120 FIRM 480
180 3 0.59 540 0.02 180 FIRM 540
240 4 0.78 960 0.03 240 FIRM 960
300 8 1.57 2,400 0.07 300 FIRM 2400
600 4 0.78 2,400 0.07 600 FIRM 2400
1,200 9 1.76 10,800 0.31 1,200 FIRM 10,800
1,800 4 0.78 7,200 0.20 1,800 FIRM 7,200
3,000 14 2.75 42,000 1.19 3,000 FIRM 42,000
5,700 7 1.37 39,900 1.13 5,700 FIRM 39,900
13,500 1 0.20 13,500 0.38 13,500 FIRM 13,500
18,000 1 0.20 18,000 0.51 18,000 FIRM 18,000
20,100 2 0.39 40,200 1.14 20,100 FIRM 40,200
21,900 1 0.20 21,900 0.62 21,900 FIRM 21,900
22,140 2 0.39 44,280 1.25 22,140 FIRM 44,280
22,380 1 0.20 22,380 0.63 22,380 FIRM 22,380
23,700 1 0.20 23,700 0.67 23,700 FIRM 23,700
23,760 31 6.08 736,560 20.85 23,760 FIRM 736,560

B.Allocation to Retail individual Investors (After Technical Rejections)
The Basis of Allocation to the Retail Individual Investors, who have bid at Cutoff Price or at the Issue Price of Rs.105 per Equity Share, was finalized in consultation with the NSE. This category has been over-subscribed to the extent of 7.422674 times. The spill over portion of 1,10,880 shares from the Employee Reservation category has been added to this category. The total number of Equity Shares allotted in this category is 4,57,75,980 Equity Shares to 5,02,877 successful applicants. The category-wise details, of the Basis of Allocation are as under:

Category No. of
Applns.
% to
total
Total No. of
Equity
shares applied
% to
total
No. of Equity
Shares allocated
Ratio Total No. of
of Equity
shares allocated
60 81,723 11.05 4,903,380 1.44 60 3:22 668,640
120 100,184 13.54 12,022,080 3.54 60 10:37 1,624,620
180 74,442 10.06 13,399,560 3.94 60 17:42 1,807,860
240 59,152 8.00 14,196,480 4.18 60 13:24 1,922,460
300 50,595 6.84 15,178,500 4.47 60 23:34 2,053,560
360 17,050 2.30 6,138,000 1.81 60 30:37 829,440
420 39,501 5.34 16,590,420 4.88 60 17:18 2,238,420
480 39,751 5.37 19,080,480 5.62 65 FIRM 2,583,815
540 8,192 1.11 4,423,680 1.30 73 FIRM 598,016
600 21,620 2.92 12,972,000 3.82 81 FIRM 1,751,220
660 3,073 0.42 2,028,180 0.60 89 FIRM 273,497
720 4,250 0.57 3,060,000 0.90 97 FIRM 412.250
780 2,120 0.29 1,653,600 0.49 105 FIRM 222,600
840 2,918 0.39 2,451,120 0.72 113 FIRM 329,734

ADDITIONAL

1 4:41 285
900 235,203 31.79 211,682,700 62.30 121 FIRM 28,459,563

C. Allocation to Non Institutional Investors (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Investors, who bid at the Issue Price of Rs.105 per Equity Share, was finalized In consultation with the NSE. This category has been oversubscribed to the extent of 21.745835 times. The spill over portion of 36,960 shares from the Employee Reservation category has been added to this category. The total number of Equity Shares allotted in this category is 15,258,660 Equity Shares to 1,557 successful applicants. The category-wise details of the Basis of Allocation sample are as under:

Category No. of
Applns.
% to
total
Total No.
of Equity
shares applied
% to
total
No. of
Equity Shares
allocated
Ratio Total No.
of of Equity
shares allocated
960 65 4.08 62,400 0.02 60 8:11 2,820
1,200 34 2.13 40,800 0.01 60 9:10 1,860
2,100 4 0.25 8,400 0.00 97 FIRM 388
5,400 6 0.38 32,400 0.01 248 FIRM 1,488
10,020 8 0.50 80,160 0.02 461 FIRM 3,688
12,000 15 0.94 180,000 0.05 552 FIRM 8,280
15,000 19 1.19 285,000 0.09 690 FIRM 13,110
30,000 8 0.50 240,000 0.07 1380 FIRM 11,040
45,000 3 0.19 135,000 0.04 2069 FIRM 6,207
66,000 1 0.06 66,000 0.02 3035 FIRM 3,035
120,000 6 0.38 720,000 0.22 5518 FIRM 33,108
180,000 6 0.38 1,080,000 0.33 8278 FIRM 49,668
225,000 2 0.13 450,000 0.14 10347 FIRM 20,694
600,000 3 0.19 1,800,000 0.54 27591 FIRM 82,773
1,200,000 1 0.06 1,200,000 0.36 55183 FIRM 55,183
2,400,000 3 0.19 7,200,000 2.17 110366 FIRM 331,098
4,500,000 2 0.13 9,000,000 2.71 206936 FIRM 413,872
9,000,000 1 0.06 9,000,000 2.71 413872 FIRM 413,872
10,025,040 1 0.06 10025040 3.02 461010 FIRM 461010
19,050,000 1 0.06 19050000 5.74 876017 FIRM 876017

D. Allocation to QIBs
Allocation to QIBs has been done on a proportionate basis in consultation with the NSE. Since the Employee Reservation category was under-subscribed, the spill over portion of 2,21,760 shares from the Employee Reservation category has been added to this category. As per the SEBI Guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available and the spill over portion from the above category (45,77,598) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares and the spill over portion from the above category (8,69,74,362) on proportionate basis.

Category Financial Institution/ Banks Foreign Institutional Investors Mutual Funds Insurance Company's Provident fund/
Pension
fund
Total
No. of Equity Shares 13,077,556 49,072,968 19,065,882 10,320,555 14,999 91,551,960

The Board of Directors of the Company at its Meeting held at Hyderabad on 5th March, 2008 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.
The CAN-cum-Refund Orders and allotment advice and notices have been dispatched to the address of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact at the address given below. The Refund orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is taking steps to get the Equity Shares admitted for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE
The details of the allocation made would be hosted on the website of the Registrar to the Issue, Karvy Computershare Private Limited at http://kcpl.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, Serial number of the Bid-Cum- Application Form, number of shares bid for, name of the Member of the Syndicate and place where the Bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: REC
Plot No. 17 to 24, Vitharao Nagar, Hitech City Road, Madhapur
Hyderabad - 500081,
Fax: 040-23420814 Email: einward.ris@Karvy.com

TOLL FREE - HELPLINE NUMBER 1-800-3454001

Place: New Delhi
Date: March 6, 2008
For Rural Electrification Corporation Limited
Sd/-
B R Raghunandan
Company Secretary

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF RURAL ELECTRIFICATION CORPORATION LIMITED.
Note: All capitalized terms used hereinabove and not specifically defined shall have the respective meaning as assigned to them in the Prospectus.

REC IPO Basis of Allotment FAQs

  1. 1. How shares are allotted in REC IPO?

    Check the basis of allotment document above to know about how the shares are allocated in REC IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).
  2. 2. What is REC IPO basis of allotment status?

    The REC IPO basis of allotment (published above) tells you how shares are allocated to you in REC IPO and category wise demand of IPO share.

    Visit the REC IPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is REC IPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in REC IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

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