AL JAZEERA ENGLISH (AJE) Indonesian stockmarket Feed
According to Rural Electrification Corporation (REC), it saw a rise of twenty four percent in its profit after tax (PAT) taking the amount to five hundred and eighty seven crores for its first quarter which ended on 30th of June 2010. The total income has gone up by twenty eight percent amounting to one thousand nine hundred and twenty eight crores of rupees.
Due to convenient lending by the central bank, Rural Electrification Corporation (REC) from the infrastructure finance space is coming up with its follow-on issue. Norms on limits of exposure for infrastructure finance companies have been reset to 20% from 15% by the Reserve Bank of India. A sound supply of credit to the sector is ensured by this rise in exposure limits.
The government is aiming to find out whether there is a premeditated attempt to cut down the stock price of Rural Electrification Corporation (REC) ahead of is follow on public offer or FPO, for which it is looking into the trading data for the shares of the company.
If adhered to the trading data of REC shares being examined by the government, then during the last one week, corporate houses have sold significantly in the PSU shares.
Rural Electrification Corporation had announced its plans for a Follow-up Public Offering on November 10, and taking the plan further, the firm has now filed a Draft Red Herring Prospectus with the SEBI, NSE and BSE.
Under the FPO, the company is looking to issue 171,732,000 of its equity shares, each priced at Rs. 10 and constituting 20% of existing paid-up capital, and looking to raise up-to Rs. 4,400 crore worth of funds in the process. The FPO is likely to be open from January 21, 2010 to January 27, 2010.
Business News Asia Pacific News
Australia Stock market
