REC gains after good Q3 result

Rural Electrification Corporation rose 1.1% to Rs 330.20 at 10:32 IST on BSE after net profit rose 12.4% to Rs 1379.83 crore on 19% growth in total income to Rs 5244.32 crore in Q3 December 2014 over Q3 December 2013.

The result was announced after market hours on Friday, 13 February 2015.

Meanwhile, the BSE Sensex was up 181.29 points, or 0.62%, to 29,276.22

On BSE, so far 60,998 shares were traded in the counter, compared with an average volume of 3.28 lakh shares in the past one quarter.

The stock hit a high of Rs 331.80 and a low of Rs 325.85 so far during the day. The stock hit a 52-week high of Rs 383.35 on 7 July 2014. The stock hit a 52-week low of Rs 181.40 on 26 February 2014.

The stock had underperformed the market over the past one month till 13 February 2015, rising 5.08% compared with Sensex's 6.09% rise. The scrip, however, outperformed the market in past one quarter, advancing 9.01% as against Sensex's 4.13% rise.

The large-cap company has an equity capital of Rs 987.46 crore. Face value per share is Rs 10.

Rural Electrification Corporation (REC) said that the Ministry of Power (MoP), Government of India, vide its letter dated 9 July 2014 had appointed its wholly owned subsidiary REC Transmission Projects Company (RECTPCL) as the bid process coordinator for the purpose of selection of bidder as Transmission Service Provider to establish Transmission System associated with Vindhyachal-V, through Tariff Based Competitive Bidding Process. Accordingly, RECTPCL formed a project specific Special Purpose Vehicle (SPVs) namely Vindhyachal Jabalpur Transmission (VJTL), as its wholly owned subsidiary company on 14 August 2014, with authorized and paid-up capital of Rs 5 lakh, divided into 50,000 equity shares of Rs 10 each.

In response to the Request for Proposal (RfP) for this project, RECTPCL received financial bids and based on the recommendations of the Bid Evaluation Committee (BEC), the board of directors of RECTPCL in its 52nd meeting held on 9 February 2015, has approved the name of Power Grid Corporation of India as successful bidder for issuance of Letter of Intent (Lol) for establishment of "Transmission System Strengthening associated with Vindhyachal-V".

VJTL being also a subsidiary vompany of Rural Electrification Corporation, the board of directors of REC in its 411th meeting held on 13 February 2015 approved the sale and transfer of 50,000 equity shares of Vindhyachal Jabalpur Transmission, presently held by RECTPCL and its nominees, to Power Grid Corporation of India and their nominees, substantially upon the terms & conditions of the Share Purchase Agreement to be executed between the RECTPCL, VJTL and Power Grid Corporation of India for establishment of Transmission System Strengthening associated with Vindhyachal-V, subject to obtaining necessary approval from the Ministry of Power, Government of India, REC said.

Rural Electrification Corporation (REC)'s board of directors at its meeting held on Friday, 13 February 2015, declared payment of interim dividend of Rs 8 per share for the year ending 31 March 2015. The record date for the purpose of payment of interim dividend is 20 February 2015, REC said.

REC, a Navratna Central Public Sector Enterprise under Ministry of Power, provides financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects.

The Government of India holds 65.64% stake in the firm as at 31 December 2014.

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