Shares of state-run Rural Electrification Corp. slipped after the board approved the revised borrowing programme of Rs 1.8 lakh crore from the earlier Rs 1.6 lakh crore.
The board approved the revision in REC's Market Borrowing Programme under different debt segments. There will be interchangeability among various instruments, including bonds, debentures, term loans, external commercial borrowings, commercial papers.
The market borrowing of Rs 1.8 lakh crore for financial year 2025 will take place via private and public placement basis. Funds under the revised market borrowing programme will be raised, from time to time, during the financial year 2025, according to the company.
The company's loan growth over the past five to seven quarters has been strong, ranging between 15-21%. With 55% of the past 2.75 years of sanctions still undisbursed — primarily in the genco, renewable, and infrastructure segments — REC is poised for double-digit to mid-teen loan growth over fiscals 2026-27, according to analysts.
Despite process-related slowdowns, the strong sanction pool and no slippage over the past two-three years provide confidence in REC's asset quality during this capex cycle. REC stands out with best-in-class loan growth, ROE, and dividend yield, CLSA had said in an earlier report.
REC Share Price
REC stock fell as much as 2.30% during the day to Rs 415 apiece on the NSE. It was trading 1.65% higher at Rs 406.3 apiece, compared to a 0.03% decline in the benchmark Nifty 50 as of 2:00 p.m.
It had declined 14.60% in the last 12 months. Relative strength index was at 47.8.
All 12 analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 615.6, implying an upside of 51.3%.
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