REC Declares Fourth Interim Dividend Of Rs 3.6 Per Share, Fixes Record Date
REC has fixed March 26 as the record date to determine the shareholders eligible for the dividend payout.
REC Ltd. on Wednesday announced a fourth interim dividend of Rs 3.6 per share for financial year 2024-25, following board approval.
The record date, to determine the shareholders eligible for the dividend payout, has been fixed as March 26. The dividend amount will be credited to shareholders on or before April 16, according to a stock exchange filing.
The company will incur an expense of nearly Rs 950 crore via the dividend payout. Since the government owns over 52% stake, it will receive nearly Rs 500 crore.
Over 10 lakh retail investors holding nominal share capital of up to Rs 2 lakh have 7.85% equity. They will be eligible for a cumulative dividend payout of Rs 74 crore.
During the current fiscal, REC issued its first interim dividend of Rs 3.5 in August, second interim dividend of Rs 4 in November and third one of Rs 4.3 in February. The dividend yield — the percentage of a company's share price paid out in dividends each year — stands at 3.77%.
REC is a 'Maharatna' company under the control of the Ministry of Power. It finances and promotes power projects, including renewable energy, across India, providing loans to various entities in the power sector.
REC Share Price Up
REC share price advanced 2.2% intraday to Rs 429.5 apiece. The scrip was trading 1.6% higher by 1:10 p.m. The benchmark NSE Nifty 50 was up 0.4%.
The stock has fallen 2% in the last 12 months and 14% on a year-to-date basis. The relative strength index was at 57.
All 12 analysts tracking REC have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price target of Rs 606 implies a potential upside of 41%.
