The State-owned company’s share opened Thursday’s trading session on a positive note as it joined hands with a PSU bank to co-finance projects worth Rs 30,000 crore for next five years.
With a market capitalization of 76,073 crore ,the power project financing company REC ltd opened their Thursday trading session on a positive note. The stock closed 2 percent higher at Rs 294 levels.
According to the reports, on 18th October two PSU companies i.e, REC Ltd and Bank of India signed the MOU to co-finance Rs 30,000 crore worth project to explore the possibility of funding in power, infrastructure and logistic segments over the next five years under a consortium arrangement.
T.S.C Bosh,Executive director(infrastructure & logistics) REC and Nithin G Deshpande CGM BOI signed the MOU in the presence of senior officers from REC and BOI.
Earlier this week, REC Ltd signed deals to finance a hydrogen thermal project worth 40,000 crore with Odisha Power Generation Corporation (OPGC) and Acme Group
When we look at the financials of both the companies, REC Ltd recorded a revenue of Rs 11,087 crore and net profit was at Rs 2,968.05 crore during Q1 FY24. On the other hand, Bank Of India’s revenue stood at 15,926 crore and net profit was increased to 1,501.22 crore during Q1 FY24.
Both PSU stocks have given multibagger returns to its investors. REC has given a whopping 144.85 percent returns YTD.
On the other hand BOI has given 107 percent returns during the past one year to its investors.
According to the latest shareholding,the government or the promoters of REC ltd has 52.63 percent of holding,12.87 percent of holdings is with public and FIIs ,DIIs hold 20.36 percent and 14.14 percent respectively.
Looking into the latest shareholding pattern of BOI 81.41 percent is held by the government or the promoters and public have 6.12 percent holdings,FIIs have a holdings of 2.92 percent and remaining 9.5 percent is held by DIIs.
A holding company of power finance corporation Ltd which in turn under the ownership of the ministry of power,the government of India.The PSU provides long term loan and other finance to power sector.It has also diversified into areas like roads,metro rails,airports. It had a loan book of Rs.4.54 lakh crore as of june.
A government owned company ,Bank of India is an Indian public sector bank headquartered in Mumbai.It is doing banking business and funding infrastructure across the country with world wide presence.
Written by Vaibhav Patil
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