 "Rural Electrification Corporation gains on bonus issue plan")
Rural Electrification Corporation (REC) was trading 4% higher at Rs 233 on the BSE after the company announced the board will consider the proposal of bonus issue at their meeting scheduled for Thursday, August 11, 2016.
“The board of directors of the company in its meeting scheduled to be held on August 11, 2016, will consider the proposal in respect of issue of bonus shares to the shareholders of the company in the ratio, as it may deem fit by way of capitalization of its reserves,” REC said in a statement.
The state-owned finance company, earlier, on July 28, had informed the stock exchanges that the board will meet on August 11, 2016, to consider and approve the un-audited financial results of the company for the first quarter ended June 30, 2016 (Q1FY17).
Edelweiss Securities expect REC to report decline in net profit and net interest income for the recently concluded quarter.
“Loan book will largely shrink following conversion of further loans of Rs 20,000 crore in Q1FY17 under UDAY; Margins will be under pressure as it has reduced lending rates plus incremental lending going towards better rates state electricity boards (SEBs),” the brokerage firm said in results preview.
At 10:11 am, the stock was up 3.9% at Rs 232 on the BSE, as compared to 0.14% decline in the S&P BSE Sensex. A combined 4.87 million shares changed hands on the counter on the BSE and NSE.
“The board of directors of the company in its meeting scheduled to be held on August 11, 2016, will consider the proposal in respect of issue of bonus shares to the shareholders of the company in the ratio, as it may deem fit by way of capitalization of its reserves,” REC said in a statement.
The state-owned finance company, earlier, on July 28, had informed the stock exchanges that the board will meet on August 11, 2016, to consider and approve the un-audited financial results of the company for the first quarter ended June 30, 2016 (Q1FY17).
Edelweiss Securities expect REC to report decline in net profit and net interest income for the recently concluded quarter.
“Loan book will largely shrink following conversion of further loans of Rs 20,000 crore in Q1FY17 under UDAY; Margins will be under pressure as it has reduced lending rates plus incremental lending going towards better rates state electricity boards (SEBs),” the brokerage firm said in results preview.
At 10:11 am, the stock was up 3.9% at Rs 232 on the BSE, as compared to 0.14% decline in the S&P BSE Sensex. A combined 4.87 million shares changed hands on the counter on the BSE and NSE.
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