REC drops ex-dividend

Rural Electrification Corporation lost 3.43% to Rs 165.90 at 9:24 IST on BSE as the stock turned ex-dividend today, 28 August 2013, for a final dividend of Rs 1.50 per share for the year ended 31 March 2013.

Meanwhile, the S&P BSE Sensex was down 193.73 points or 1.08% at 17,774.35.

On BSE, 13,000 shares were traded in the counter as against average daily volume of 3.50 lakh shares in past two weeks.

The stock hit a high of Rs 166.90 and a low of Rs 162.65 so far during the day.

Before turning ex-dividend, the stock offered a dividend yield of 0.87% based on the closing price of Rs 171.80 on Tuesday, 27 August 2013.

Meanwhile, Rural Electrification Corporation (REC) after market hours on Tuesday, 27 August 2013 said it has filed shelf prospectus and prospectus tranche-I in respect of proposed public issue of tax free secured redeemable non-convertible bonds, in the nature of debentures, during the financial year 2013-14, with the Registrar of Companies (RoC), NCT of Delhi and Haryana on 27 August 2013. The public issue of tax free secured redeemable non-convertible bonds, in the nature of debentures of REC will open on 30 August 2013 for subscription and is scheduled to close on 23 September 2013.

REC's net profit surged 31.6% to Rs 1153.66 crore on 29.4% growth in total income to Rs 4001.38 crore in Q1 June 2013 over Q1 June 2012.

REC's main objective is to finance and promote rural electrification projects all over the country. The company provides financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects as are sponsored by them. The Government of India owns 66.80% stake in REC (as per the shareholding pattern as on 30 June 2013).

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