New Delhi, Oct 29 (IANS) The government Thursday approved state-run Rural Electrification Corp’s (REC) proposal to raise additional resources through a follow-on public offer (FPO).
The approval was given by the Cabinet Committee on Economic Affairs (CCEA).

The company will now issue 17,17,32,000 equity shares of Rs.10 each, constituting 20 percent of the existing paid-up capital, a government statement said.

“The additional resources generated through the issue of the FPO will be utilised by REC in its investment programmes. Part of the shares will be issued for employees,” the statement said.

REC board had Oct 16 approved the public offer.

The government holds 81.82 percent stake in the company.

The CCEA in its Oct 10 meeting had approved a proposal of state-run power utility NTPC to divest 5 percent government equity to raise Rs.8,800 crore.