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The recent stock market turmoil seems to have had little impact on the employees of two state- run power firms, REC and NHPC, who are waiting eagerly for the initial public offers of their companies.
At New Delhi headquarters of Rural Electrification Corp, close to 95 per cent of staff has already got a demat account, while most of them have deferred their other investment plans to save funds for the IPO, expected by mid-February.
Employees of National Hydroelectric Power Corporation are also looking forward to subscribe to the company's shares whenever the public issue hits the market.
Though disappointed by the delay, persons on payrolls of NHPC are waiting eagerly for the IPO, a company spokesperson told PTI. The company had filed its draft prospectus months back, but it has not received the go-ahead from the market regulator as yet, and might have to file a fresh prospectus.
However, there is no disappointment in air at REC - a lending institution to power sector - and employees are upbeat about success of the IPO as well as their own participation.
REC is estimated to raise about Rs 1,200 crore through the IPO by offering 15.61 crore shares, which includes about 39 lakh shares reserved for the employees.
At least 40 of its middle-level and senior executives are planning to bid for shares worth the maximum permissible limit of Rs 25 lakh under the employee quota when the public issue opens for subscription later this month, said a senior executive at the company here.
This would surpass the employee response in the previous two IPOs from public sector power companies -- Power Finance Corp (PFC) and PowerGrid (PGCIL), each of whom saw less than ten of their senior executives bidding for shares worth the maximum permissible limit of Rs 25 lakh.
At REC, which had 698 employees as on March 31, 2007, including 227 non-executives and 471 at executive levels, a large number of employees might bid for shares worth at least Rs 10 lakh.
Source : economictimes.indiatimes.com |
