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Issue Open Date
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19-Feb-08
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Issue Closing Date
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22-Feb-08
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Application Money
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100
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Allotment Money
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Price Band
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90
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105
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Minimium Application No.
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60
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Issue Size (Shares)
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156120000
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Market Lot
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1
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Objective
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1. Primarily Loan and Investment Portfolio2. Meet the Future Capital Requirements 3. Meet General Corporate Purposes4. Meet Expenses of the Issue in order to Achieve the Benefits of Listing on the Stock Exchanges
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Category
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No. of Shares
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No. of Shares
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Subscription Ratio
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Offered / Reserved |
Bid For |
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Non-Institutional Investors
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15221700
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412800360
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27.12
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Qualified Institutional Buyers
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91330200
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3589707840
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39.30
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Retail Individual Investors
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45665100
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350656620
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7.68
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Business Description
We are one of the leading public financial institutions in Indian power infrastructure. We are engaged in the financingand promotion of transmission, distribution and generation projects throughout India. We believe our organizationoccupies a key position in the GoI's plans for the growth of the Indian power sector.We commenced our operations in 1969 for the purpose of developing the power infrastructure in rural areas. Ourschemes have historically aimed at extending and improving the supply of electricity and the energisation of agriculturalpump sets. Through our funding of transmission and distribution projects in rural areas, we have contributed to thedevelopment of rural India and India's agriculture. Although our emphasis continues to be on the development ofelectrification of rural areas, our mandate has evolved in accordance with the development priorities of the GoI andpermits us to finance all segments of the power sector throughout the country.We provide funding to our clients and assist them in formulating and implementing various types of power projectrelatedschemes. Our clients include public sector power utilities at the central and state levels and private sector powerutilities. Additionally, we fund power projects for our joint sector clients. Our financial products primarily include long-termloans, short-term loans, bridge loans and debt refinancing.We occupy a unique position within the area of rural electrification of India and we believe we will continue to play anintegral role in implementing the GoI's rural electrification strategy. We currently administer grants and provide loans asthe nodal agency for the RGGVY, which is primarily aimed at the electrification of all villages in India. We areresponsible for overseeing this programme from conception to completion.As a public sector undertaking, we have been accorded "Mini Ratna Grade-I" status by the GoI by virtue of ouroperational efficiency and financial strength, which affords greater operational freedom and autonomy in decisionmaking.In recognition of our performance and our consistent achievement of targets negotiated under the memorandaof understanding that we enter into with the GoI on an annual basis, the GoI has rated our performance as "Excellent"continuously from Fiscal 1994 through Fiscal 2007. We have also been ranked among the top ten public sectorundertakings in India by the Ministry of Heavy Industries and Public Enterprises for Fiscal 2000, Fiscal 2002 and Fiscal2005.We service our clients through a network of seventeen project offices spread across India. Our project offices play anintegral role in the promotion of our business and in our loan appraisal, loan sanction and post-sanction monitoringprocesses.We fund our business with market borrowings of various maturities, including bonds and term loans. Because oursources enable us to raise funds at competitive costs, we believe we are able to price our financial productscompetitively.Domestically, we hold long-term borrowing ratings of "AAA/Stable" from CRISIL Limited, "LAAA" from ICRA Limited,"AAA(ind)" from Fitch and "CARE AAA (Triple A)" from CARE Limited, each of which is the highest long-term domesticrating of the respective agency. On an international basis, we hold long-term borrowing ratings of "BBB-" and "Baa3"from Fitch and Moody's, respectively, which are on par with sovereign ratings for India. For further details, see the sectiontitled "-Our Credit Ratings" beginning on page 85 of this Red Herring Prospectus.The President of India, acting through nominees from the MoP, currently holds 100% of the issued and paid up equitycapital of our Company. After the Issue, the GoI's shareholding will be 81.82% of the diluted post issue paid up equitycapital of our Company. The GoI, acting through the MoP, oversees our operations and has power to appoint Directorsto our Board.We have experienced growing demand for our financial products, and therefore have demonstrated consistent growthin our business.Our loan sanctions and loan disbursements have grown at a CAGR of 28.37% and 13.51%, respectively, betweenFiscal 2003 and Fiscal 2007. For Fiscal 2007, our loan sanctions amounted to Rs. 329,254 million, comprised ofRs. 201,090 million relating to transmission and distribution projects, Rs. 103,644 million relating to generationprojects and Rs. 24,519 million relating to short-term and other loans. For Fiscal 2007, our loan disbursementsamounted to Rs. 107,328 million, comprised of Rs. 47,840 million relating to transmission and distributionprojects, Rs. 42,910 million relating to generation projects and Rs. 16,579 million relating to short-term and otherloans. For the six months ended September 30, 2007, our loan sanctions amounted to Rs. 224,481 million,comprised of Rs. 76,660 million relating to transmission and distribution projects, Rs. 130,321 million relating togeneration projects and Rs. 17,500 million relating to short-term and other loans. For the six months endedSeptember 30, 2007, our loan disbursements amounted to Rs. 58,061 million, comprised of Rs. 27,697 millionrelating to transmission and distribution projects, Rs. 19,944 million relating to generation projects and Rs. 10,420million relating to short-term and other loans.Our profit after tax for Fiscal 2003, 2004, 2005, 2006, 2007 and for the six months period ended September 30,2007 was Rs. 7,299 million, Rs. 8,590 million, Rs. 20,219 million, Rs. 8,079 million, Rs. 7,750 million and Rs. 5,229million, respectively.The size of our business represented by our loan assets has grown at a CAGR of 22.65% from Rs. 141,318million in Fiscal 2003 to Rs. 319,745 million in Fiscal 2007. The size of our business represented by our loanassets for the six months period ended September 30, 2007 was Rs. 359,896 million.As on March 31, 2007, we had total assets of Rs. 360,787 million and net worth of Rs. 36,827 million. As onSeptember 30, 2007, we had total assets of Rs. 387,235 million and net worth of Rs. 41,763 million.
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Back
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Address |
Core 4 Scope Complex
7 Lodhi Road
New Delhi
,
Delhi
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110003
Phone :
011-2436 5161
Email :
reccorp@recl.nic.in
Website :
www.recindia.nic.in
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Registrar |
ABS Consultants Pvt Ltd
Stephen House
6thFloor
Room No 99
4 B B D Bag (E)
Kolkatta
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Listed at |
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BSE, NSE
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Lead Manager |
DSP Merill Lynch Ltd
ICICI Securities Ltd
IL&FS Investsmart Ltd
JM Financial Consultants Pvt Ltd
Kotak Mahindra Capital Co Ltd
RBS Equities (India) Ltd.
SBI Capital Markets Ltd
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Promoters |
Government of India
THE PRESIDENT OF INDIA
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Promoter's Holding
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Total Share Capital
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780600000
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Offered to Public
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156120000
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Promoter's Holding (Pre-Issue)
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100
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Promoter's Holding (Post-Issue)
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81.82
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