State-owned Rural Electrification Corp declared that its shares in a follow-on public offering, targeted to raise Rs 3,500 crore, will hit the market in the next four months. The FPO’s draft prospectus will likely be filed in mid-December, said REC chairman and managing director Uma Shanker. “We would file the Draft Red Herring Prospectus with (the Securities and Exchange Board of India) by mid-December and the FPO is likely to hit the market by February next year,” said Shanker at the Economic Editors’ conference on Wednesday. Of the total 17 lakh offer in credit, “our employees would get one lakh shares,” he said. The Ministry of Power’s disinvestment in REC makes up 25 per cent of the full FPO, while 15 per cent is comprised of fresh equity. The revenue generated will be used to fund power projects in rural India on loans. In fiscal 2008-2009, REC sanctioned Rs 27,274 crore for generation projects generating 12,670 MW.