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Centre to throw away 5% REC stake tomorrow

The government will sell 5 per cent stake in Rural Electrification Corporation on April 8 to mop up close to Rs 1,600 crore, marking the first disinvestment of the current fiscal.

Taking the offer for sale (OFS) route, government will sell over 4.93 crore REC shares. "The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence on April 8," REC said in a filing to the BSE.

Shares of REC closed at Rs 335.60, down 0.52 per cent over previous close on the BSE. The government is likely to fix the floor price for the OFS at a discount to the current market price. The 5 per cent share sale would fetch about Rs 1,600 crore to the exchequer. As much as 20 per cent of the offer size would be reserved for retail investors, who can bid for shares worth Rs 2 lakh.

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