REC follow-on offer on Feb 19

REC's follow-on public offer, through which the government plans to divest 20% stake, would open on February 19. According to the draft red herring prospectus filed with Sebi, the issue would close on February 23. At Thursday's closing price of Rs 242.75 on BSE, the FPO of 17,17,32,000 equity shares would raise over Rs 4,100 crore. The offer would comprise a 5% stake dilution by the government and issuance of a 15% fresh equity. Post-FPO, the government's share in REC would come down to nearly 66% from the current 81.82%.