The shares of the maharatna company gained up to 13 percent after the company’s board has approved fund raising up to Rs 1.45 lakh crore through private placement.
With a market capitalization of Rs 1.58 lakh crore, the shares of REC Ltd were trading at Rs 602.05 per share, increasing around 11.98 percent as compared to the previous closing price of Rs 537.65 apiece.
According to the company filing, Board of Driector of REC Ltd has consider and approved fund raising up to Rs 1.45 lakh crore through private placement of unsecured/ secured non convertible bonds/debenture. The fundraising will take place in one or more tranches from time and time, during a period of one year.
Looking into the REC’s financial performance, revenue surge by 23 percent from Rs 10,243 crore in Q4FY23 to Rs 12,677 crore in Q4FY24, during the same time frame net profit climbed by 33 percent from Rs 3,065 crore to Rs 4,079 crore.
The company has given a return 55.32 percent in six months and a multibagger return of 316.83 percent in a year.year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 4.16 lakh in a year.
REC provides long-term loans and other financial instruments to state, central, and private sector companies in order to build infrastructure assets in the country. It funds power sector infrastructure, renewable energy and innovative technologies, as well as non-power infrastructure and logistics. It maintains a national presence through 22 state offices.
As of March 31, 2023, REC’s loan portfolio consisted of 39% generating projects, 11% transmission projects, 37% distribution projects, 7% renewable energy projects, and 6% STL/RBPF.
The company aim to increase its present loan portfolio of green project to an extent of more than ten times by the year 2030 amounting to Rs 3 lakh crore and also has a target to achieve a loan book of more than Rs 10 lakh crore by March 2030.
REC Limited is an India-based infrastructure finance business. The Company’s offerings include interest-bearing loans to state electricity boards, state power utilities/departments, and the private sector for all aspects of power infrastructure. It focuses on one business segment: loans to Dower, logistics, and infrastructure.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
