REC IPO public offering of 15.6 crore shares

Rural Electrification Corporation, REC, a state run company, is coming out with an initial public offering of 15.6 crore shares to raise nearly Rs 1404.9-1639.05 crore

Open :Feb19 close:Feb22, 2008.

price band : Rs 90-105 per share,

India's economic growth forcast - expected to be at 8.7% for 2008.

India's economic growth is likely to stand at 8.7% for 2008 thanks to slow expansion in industrial output, said a government estimate released on Thursday.

It said the economic growth has been hit by high interest rates, and sluggish agriculture. The Gross Domestic Product (GDP) had grown at 9.6% in 2006-07, which was the highest in 18 years.

"GDP at factor cost at constant (1999-2000) prices in the year 2007-08 is likely to attain a level of Rs 31,14,452 crore as against Rs 28,64,310 crore in 2006-07,'' it said.

The GDP grew at 9.1 per cent during the first half of this fiscal. It grew at 9.3 per cent in the first quarter and 8.9 per cent in the next three-month period. The advance estimates showed a further moderation during the rest of the year.

The estimated growth rate is slightly higher than the conservative RBI projection of 8.5 per cent, but less than 9.1 per cent, projected by economic think tank NCAER.

Finance Minister P Chidambaram had earlier exuded confidence that the economy will grow close to 9% during 2007-08. High interest rates have b and reduced demand for consumer goods, affecting ma nufacturing growth.

The manufacturing sector is likely to grow at 9.4 % during the fiscal as against 12% last year. The advance estimates revealed that agri and allied activities are likely to expand at 2.6 % as against 3.8 % in the previous year.