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Rural Electrification Corporation Ltd.

BSE: 532955 Sector: Financials
NSE: RECLTD ISIN Code: INE020B01018
BSE LIVE 15:59 | 22 Sep 163.20 -2.65
(-1.60%)
OPEN

166.00

HIGH

167.10

LOW

162.10

NSE 15:58 | 22 Sep 163.80 -2.55
(-1.53%)
OPEN

165.50

HIGH

167.25

LOW

162.30

OPEN 166.00
PREVIOUS CLOSE 165.85
VOLUME 782891
52-Week high 223.80
52-Week low 113.10
P/E 5.26
Mkt Cap.(Rs cr) 32,231
Buy Price 0.00
Buy Qty 0.00
Sell Price 163.20
Sell Qty 2502.00
OPEN 166.00
CLOSE 165.85
VOLUME 782891
52-Week high 223.80
52-Week low 113.10
P/E 5.26
Mkt Cap.(Rs cr) 32,231
Buy Price 0.00
Buy Qty 0.00
Sell Price 163.20
Sell Qty 2502.00

Rural Electrification Corporation Ltd. (RECLTD) - Company History

Rural Electrification Corporation Ltd is a Navratna Central Public Sector Enterprise under Ministry of Power. The company is engaged in the financing and promotion of transmission distribution and generation projects throughout India. Their main objective is to finance and promote rural electrification projects all over the country. They provide financial assistance to State Electricity Boards State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them. The company provides loan assistance to SEBs/ State Power Utilities for investments in rural electrification schemes through its Corporate Office located at New Delhi and 17 field units (Project Offices) which are located in most of the States. The Project Offices in the States coordinate the programmes of REC's financing with the concerned SEBs/ State Power Utilities and facilitate in formulation of schemes loan sanction and disbursement and implementation of schemes by the concerned SEBs/ State Power Utilities.The company assists their clients in formulating and implementing a broad array of power projects and finance those projects. Their clients primarily include Indian public sector power utilities at the central and state levels and private sector power utilities. Their primary financial product is project-based long-term loans. They fund their business with market borrowings of various maturities including bonds and term loans.Rural Electrification Corporation Ltd was incorporated on July 25 1969 at New Delhi as a private limited company with the name Rural Electrification Corporation Pvt Ltd. In the year 1970 the company commenced lending operations to SEBs. In the year 1979 they set up CIRE in Hyderabad. In the year 1988 the company launched Kutir Jyoti and Jal Dhara programmes for rural electrification. In the year 1992 the company was declared a public financial institution. In the year 1993 the company entered into MoU with the MoP for the first time to achieve certain performance related targets. In February 1998 the company was registered as a Non Banking Financial Company. In the year 2002 the company was granted Mini Ratna - I Status. In September 27 2002 the company was converted into a public limited company and the name was changed to Rural Electrification Corporation Ltd. From the year 2002 the company diversified into financing of Generation projects for creation of new generation capacity.In the year 2005 the company was appointed as the nodal agency for RGGVY. In the year 2006 the company entered into agreement with Japan International Cooperation Agency for availing a loan facility of JPY 20629 million. Also they entered into an agreement with KfW Frankfurt am Main for availing a loan facility of Euro 70 million.In the year 2007 the company entered into a syndicated facility agreement with Standard Chartered Bank and DEPFA Investment Bank for availing a loan facility of JPY 23570 million. In January 2007 REC Transmission Projects Company Ltd a subsidiary company was incorporated as a public limited company with the main object of REC TPCL is to promote organize and carry on the business of consultancy services and/ or Project implementation in any field of activity relating to transmission & distribution of electricity in India or abroad.During the year 2007-08 the company made an Initial Public Offer and their shares were listed on the stock exchanges. In the Post-IPO scenario the shareholding of the Government of India has reduced from 100% to 81.82%. The company entered into agreement with Japan International Cooperation Agency for availing a loan of JPY 20902 million. In May 2008 the company was granted Navratna status by the Department of Public Enterprise GoI for their operational efficiency and financial strength which affords greater operational freedom and autonomy in decision making. During the year 2008-09 the company sanctioned 20 Nos of new generation / R&M loans and 3 Nos additional loan assistance with total financial outlay of Rs.21525.31 crore including consortium financing with other financial institutions. Also they sanctioned a total of 317 system improvement schemes and bulk loan schemes involving a loan outlay of Rs.14511.49 crore. They reported 188743 electric irrigation pumpsets energized under REC financed schemes. Also the company entered into agreement with KfW Frankfurt am Main for availing a loan facility of Euro 70 million.During the year 2009-10 the company sanctioned 26 Nos of generation / R&M loans including 5 Nos additional loan assistance with total financial outlay of Rs.24031.32 crore. Also they sanctioned a total of 289 system improvement schemes and bulk loan schemes involving a loan outlay of Rs.15421.64 crore. They reported 240020 electric irrigation pumpsets energized under REC financed schemes. Also the company made the Further Public Offer (FPO) during the year and the shareholding of the Government of India in the company reduced to 66.80%. During the year 2010-11 the Company sanctioned 34 nos. of generation loans including additional loan assistance with total financial outlay of Rs 40101 crore including consortium financing with other financial institutions. During the year 11 nos. Renewable Energy projects including 6 nos. Solar projects were sanctioned with total project cost of Rs 621.06 crore and loan assistance of Rs 390.71 crore. In September 17 2010 Reserve Bank of India (RBI) categorized the company as an Infrastructure Finance Company (IFC). In December 2010 the company's subsidiary REC Transmission Projects Company Ltd sold 50000 shares held in Raichur Sholapur Transmission Company Ltd to consortium of Patel engineering Ltd Simplex Infrastructure Ltd and BS TransComm Ltd for a consideration of Rs 18.89 crore. In April 21 2011 Vemagiri Transmission System Ltd (a wholly owned subsidiary of RECTPCL) was incorporated in respect of Transmission System associated with IPPs of Vemagiri Area: Package A.The company received India Pride Award 2010 for being adjudged The Best NBFC and also Third DSIJ Award 2010-11 - Speed King for fastest growing PSUs across Maharatnas Navratnas & Miniratnas. The company also featured in Dun & Bradstreet's India's Top PSUs 2011.During 2012 the corporation sought the approval of Reserve Bank of India (RBI) for issuing bonds to raise up to USD 500 million. In 2014 the corporation was awarded Dalal Street PSU Award 2014. The company was awarded India Today - PSUs Awards 2014 for Best HR Practices. During the year the company Signed MoU with Ministry of Power for the Financial Year 2014-15. In 2015 the corporation has signed two separate agreements with Andhra Pradesh Power Generation Corporation Limited and Transmission Corporation of Andhra Pradesh Limited. During the year the Corporation incorporated three Project Specific Special Purpose Vehicles (SPVs) as Subsidiary Companies of Rural Electrification Corporation Limited.