REC IPO opens Feb 19, price band fixed at Rs 90-105/sh

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Rural Electrification Corporation Limited ("REC" or "the Company"), one of the leading public financial institutions in Indian power infrastructure, proposes to enter the Capital Markets on February 19, 2008 with a public issue of 156,120,000 Equity Shares of Rs. 10 each through 100% book building process. The Issue comprises a fresh issue of up to 78,060,000 Equity shares by REC and an offer for sale of up to 78,060,000 Equity Shares by the President of India acting through the Ministry of Power. The net issue to the public will be up to 152,217,000 Equity Shares, after allowing for reservation of up to 3,903,000 Equity Shares for subscription by eligible employees as defined in the Red Herring Prospectus. The Issue shall constitute approximately 18.18% of the fully diluted post-issue capital of REC. The Issue closes on February 22, 2008 and the Price Band has been fixed at Rs 90 to Rs 105 per Equity Share of Rs 10 each. IL & FS Investsmart Securities Limited, ICICI Securities Limited and SBI Capital Markets Limited. are the Book Running Lead Managers for the Issue. The Equity Shares are proposed to be listed on the NSE and the BSE.

Domestically, it holds long-term borrowing ratings of "AAA"/Stable from CRISIL Limited, "LAAA" from ICRA Limited and "AAA(ind)" from Fitch, each of which is the highest long-term domestic rating of the respective agency. On an international basis, the Company holds long-term borrowing ratings of "BBB-" and "Baa3" from Fitch and Moody's, respectively, which are on par with sovereign ratings for India.

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