Rural Electrification Corp!!

I Guess it has a very high potential on a long term basis and the price is affordable one. The fundas looks impressive. Got an excellent growth curve.
What do you say folks???

PTC India is available in secondary market at cheaper price compare with REC. I will prefer PTC than REC. PTC has floated its subsidery PTC Finance and going to float another company for its coal business.
See share holding pattern of PTC. Reliance, Kotak,LIC etc has bought heavy PTC shares recently. PTC also raised 1200 Crores from QIB rout last month.

Anyone can expect multitime its price appreciation tin coming three years.

MKSingh

Not applying from IPO, will buy after it lists for long term.

Good issue to subscirpe. Seeing the ipo of PFC and Power Grid...it should do well...even if not as great as thier listings atleast 20-25% can be expected...thats for listing gains....for long term....its truly one of mini-navratna.

REC will be the good issue and nearly 1500cr issue. i will going to subscribe the issue. lot is 60 shares and price band is 80-105.

your comments?

if i am not wrong the price band is 90 to 105.

anybody suggest me regarding applying for rural eectrification IPO.

Looks good for long term buy. Surely all the new infra MF will be subscribing this.
Can expect a a good listing .

Yes its a good issue for listing gains and very good issue for long term gains....

guys lets not treat this treat this script as anyother ipo for listing gains. This really looks good to me.....hopefully if budget offers some concessions to power sector for expansion......we will again see rally in power sector.........i have my fingures crossed...

Yep its coming, after a long time primary market is going to see some action. And that too form the same power sector. So what is in store for us? The company is going to raise Rs 1640 Crore by issueing 15.61 crore equity shares with a price band of Rs 90 - 105. But will it be the same like Reliance Power? I guess not. Rural electrification is public sector company so the valuations are reasonable. It may have Power grid fan following.

About The Company
REC is one of the leading public financial institutions in Indian power infrastructure, engaged in the financing and promotion of transmission, distribution and generation projects throughout India. The company occupies a unique position within the area of rural electrification of India and it currently administer grants and provide loans as the nodal agency for the RGGVY, which is primarily aimed at the electrification of all villages in India. As a public sector undertaking, it has been accorded `Mini Ratna Grade-I` status by the GoI by virtue of its operational efficiency and financial strength, which affords greater operational freedom and autonomy in decision-making. The company also has long term borrowing rating of AAA by CRISIL. REC was also ranked among the top 10 public sector companies in the past . It has been operating at net interest margin NIM of 3%. The company has NPA's of less than 2%. While the main aim will be to undertake rural electrifiaction, it has also come into urban areas. REC is playing a much larger role. It has developed into a robust agency that provides technological and financial support to all the three sectors: generation, transmission and distribution. REC has atleast got something (Rather than Reliance Power) and making profit.

Valuations
Now to start with REC is a wholly owned Government of India Public Sector Enterprise with a net worth of Rs. 3779 Crore. The issue price band of Rs 90-105 implies a PER of 9.65-11.26X on H1FY08 annualised EPS of Rs 9.32. ( This in my view is absolutely OK compared to other currently in the market even power grid trading at around 20 PE) As the growth of power sector is iminent in the country REC will be a great benificiary. In my view people should apply for the issue.

People please give ur views on the IPO and share with other group menbers
Best Regards
Yatish