IPO plus piggy back issue for REC, NHPC and PGCIL

New Delhi, Feb 8 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for sale of 10 per cent pre-issue paid up equity of Rural Electrification Corporation Limited (REC), five per cent of Power Grid Corporation of Indian Limited(PGCIL) and five per cent of National Hydro- Electrical Power Corporation Limited (NHPC).

"This is estimated at the present book value to garner Rs 2,400 crore for the concerned power companies and there will subsquently be a piggy back issue to enable to get funds for the National Investment Fund of about Rs 1,500 crores." Finance Minister P Chidambaram told reporters here in a briefing on the Cabinet and CCEA decisions.

The government equity in these three companies is 100 per cent and the price band will be decided by these companies taking into account the market conditions. The off-loanding of equity will be done in the next few months.

The fresh equity equal to ten per cent of the pre-issue piad up capital will be 10 per cent each of REC, PGCIL and NHPC.

The government equity after the piggy back and IPO will be as follows: REC 81.22 per cent, PGCIL 86.6 per cent and NHPC 83.36 per cent.

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