The Rural Electrical Co-operation, the state run power sector company, had earlier announced to come with a follow on public offer. The issue opened on Friday and got 29% subscribed on day one. The floor price was fixed on Wednesday which was Rs. 203 at 8% discount from the prevailing market price.

The offer which closes on 23 February attracted the maximum bids at a price of Rs. 204. Total 17.17 crore shares were on offer out of which 4.97 crore shares were subscribed for on day 1. The stock exchange data suggested it was 0.29 times the shares on offer.

Domestic banks and institutions accounted for 4.32 crore shares out of 4.97 crore shares that were subscribed so far. The NTPC issue also had been bailed out by the domestic banks and FIIs and the FPO of REC looks to be going on the same path. Both got a lukewarm response from the retail investors. The retail quota for REC could attract just 3.30 lakh bid against the 5.99 crore shares that were on offer.

In the secondary market, shares of Rural Electrical Co-operation were down 0.26 per cent and closed at Rs 213.70, over previous close on the BSE.