With strong demand from retail and institutional investors, the issue received bids for over 27.31 crore shares as against 4.93 crore shares on offer, resulting in over- subscription of 5.53 times, as per data available with stock exchanges.

The stake sale in Rural Electrification Corporation (REC) is the first in the government's disinvestment pipeline for the current fiscal.

The government has budgeted to collect Rs 41,000 crore from PSU disinvestment this fiscal.

The REC issue received bids worth Rs 7,621 crore, with retail investors bidding for shares worth Rs 3,415 crore.

Institutional investors put in bids worth Rs 4,734 crore which include FII bids worth Rs 1,692 crore.

The portion reserved for retail investors, who got a 5 percent discount, was subscribed 9.02 times.

The general category portion was over-subscribed 4.66 times. "We are very happy with REC issue. We started at beginning of fiscal, we have been studying the market and timed it right," Disinvestment Secretary Aradhana Johri said.

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