Govt to sell 5 per cent stake in REC

The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh.

“The stake would be sold during the current financial year 2009-10. The timing of offloading will be decided keeping the best return in mind,” Home Minister P Chidambaram told reporters after the Cabinet meeting.

“There is appetite for REC shares. Of course, the market is not that good now. The appropriate time for offloading will be taken keeping all factors into consideration,” he said. The government will go ahead with Follow-on Public Offer (FPO) of REC of 17,17,32,000 equity shares of Rs 10 each constituting 20 per cent of existing paid-up capital which comprises fresh issue of 12,87,99,000 equity shares (15 per cent of existing paid-up capital).