India's REC sets floor price for $757 million follow-on

Power sector financing company Rural Electrification Corp will be the second issuer to use a French auction, although the auction has been modified to allow investors to lower their bids should the underlying share price fall.

While much of Asia is still seemingly on hold after celebrating Lunar New Year, Rural Electrification Corp will open the books today for a follow-on share sale of at least Rs34.86 billion $757 million that will mark the second asset sale by the Indian government in just two weeks.

This time, the shares sold by the government account for just 25% of the total offering, giving REC a chance to raise fresh capital as well. The company, which is currently...

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