A Central Public Sector Enterprise under the Ministry of Power, Rural Electrification Corporation (REC) Limited, on 7 December announced its plans to raise Rs 6,000 crore.

In its regulatory filing, the company announced its plans to raise Rs 6,000 crore by issuing two bonds.

The company plans to raise Rs 4,000 crore through the first bond, which will include Rs 3,300 crore in greenshoe option and will mature in 15 years or on 30 November 2038.

Through the second bond, they will raise Rs 2,000 crore, will include Rs 1,500 crore in a greenshoe option, and the bond will mature on 29 November 2025 or in 1 year 11 months.

Greenshoe option is a provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.

The bidding for the bonds will take place on 8 December on the NSE (National Stock Exchange of India’s electronic bidding platform. The bidding for the first bond will take place between 11 am and 12 pm, whereas the bidding for the second bond will take place between 12 pm and 1 pm.

The company has set 12 December as the pay-in date, wherein the investor has to pay money to its issuer in exchange for the bonds.