REC gains after subsidiary transfers shares to PGCIL

Rural Electrification Corporation rose 1.89% to Rs 328 at 11:44 IST on BSE after the company said that its wholly owned subsidiary transferred 50,000 equity shares of Vindhyachal Jabalpur Transmission to PGCIL and their nominees.

The announcement was made after market hours yesterday, 26 February 2015.

Shares of Power Grid Corporation of India were off 0.07% at Rs 152.70.

Meanwhile, the S&P BSE Sensex was up 214.28 points or 0.75% at 28,960.93.

On BSE, so far 1.18 lakh shares of Power Grid Corporation of India's shares exchanged hands in the counter as against average daily volume of 2.77 lakh shares in the past one quarter.

The stock hit a high of Rs 329.50 and a low of Rs 323 so far during the day. The stock had hit a 52-week high of Rs 383.35 on 7 July 2014. The stock had hit a 52-week low of Rs 181.40 on 26 February 2014.

The stock had outperformed the market over the past one month till 26 February 2015, rising 1.16% compared with Sensex's 1.82% fall. The scrip had, however, underperformed the market in past one quarter, sliding 2.53% as against Sensex's 1.27% rise.

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

Rural Electrification Corporation (REC) said that its wholly owned subsidiary, REC Transmission Projects Company (RECTPCL), has transferred 50,000 equity shares of Vindhyachal Jabalpur Transmission (VJTL) to Power Grid Corporation of India (PGCIL) and their nominees on 26 February 2015, upon the terms and conditions as detailed in the Share Purchase Agreement executed between RECTPCL, VJTL and PGCIL, for establishment of "transmission system strengthening associated with Vindhyachal-V".

REC's 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.

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.

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