REC Share Price Gains On Plans To Raise Rs 1.55 Lakh Crore
The funds will be raised in multiple tranches, REC said.
REC Ltd.'s share price rose 2.21% after the company announced that it plans to raise up to Rs 1.55 lakh crore through the private placement of unsecured or secured non-convertible debentures over the next year.
This plan is subject to shareholder approval at the upcoming annual general meeting. The funds will be raised in multiple tranches, with final approvals resting with the competent authority.
In addition, REC Ltd. has decided to dissolve its project-specific subsidiary, Rajgarh III Power Transmission Ltd., pending necessary approvals from relevant authorities.
This subsidiary, a wholly owned unit of REC Power Development and Consultancy Ltd., was initially established to manage the 1,500 MW power evacuation project in Rajgarh, Madhya Pradesh, as part of the government's transmission development initiatives.
REC Share Price Today
REC shares rose as much as 2.21% to Rs 409.75 apiece. They pared gains to trade 0.67% higher at Rs 403.60 apiece, as of 10:27 a.m. This compares to a 0.42% advance in the NSE Nifty 50 Index.
The stock has fallen 12.17% in the last 12 months. The relative strength index was at 48.
All 12 analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 36.6%.
