Mumbai: The board of directors of the Rural Electrification Corporation today approved the proposed follow-on public offer (FPO) of the state-run company.
However, the decision on the public offering of shares is subject to approval of the Government of India, REC said in a statement to the Bombay Stock Exchange (BSE).
The company said it would also convene an extra-ordinary general body meeting {EGM) to get the shareholders' approval.
REC plans to raise Rs 3,200 crore through this FPO. It wants to use the proceeds to give loans for financing power projects.
At the end of June quarter, the government held 81.82 percent stake in the company.
Shares of REC today closed at Rs 211.85, down 0.35 percent from its previous close on the BSE.
Bureau Report
First Published: Friday, October 16, 2009, 17:43