REC rises after extending financial assistance for projects in AP

REC rose 2.2% to Rs 271.75 at 12:35 IST on BSE after signing MoU with Andhra Pradesh Power Generation Corporation and Transmission Corporation of Andhra Pradesh, for extending financial assistance for projects in Andhra Pradesh.

The company made announcement during market hours today, 24 September 2015.

Meanwhile, the S&P BSE Sensex was down 34.19 points or 0.14% at 25,787.21.

On BSE, so far 61,407 shares were traded in the counter as against average daily volume of 1.67 lakh shares in the past one quarter.

The stock hit a high of Rs 272.95 and a low of Rs 264.55 so far during the day. The stock had hit a 52-week high of Rs 371.05 on 4 March 2015. The stock had hit a 52-week low of Rs 211.40 on 25 August 2015.

The stock had outperformed the market over the past one month till 23 September 2015, rising 4.85% compared with Sensex's 5.64% fall. The stock had however underperformed the market in past one quarter, dropping 7.91% as against Sensex's 7.13% fall.

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

Rural Electrification Corporation (REC) announced that the company has yesterday, 23 September 2015 signed memorandum of understanding (MoU) with Andhra Pradesh Power Generation Corporation and Transmission Corporation of Andhra Pradesh., for extending financial assistance. The financial assistance of Rs 3000 crore will be extended by REC to Andhra Pradesh Power Generation Corporation (APGENCO) for the proposed 500 megawatts (MW) solar power generation project in Anantapur District of Andhra Pradesh. REC will also extend assistance to Transmission Corporation of Andhra Pradesh (APTRANSCO) of Rs 6000 crore for various transmission & system improvement projects coming up in the Capital region of Andhra Pradesh.

REC's net profit rose 15.3% to Rs 1478.58 crore on 21.3% growth in total income to Rs 5709.63 crore in Q1 June 2015 over Q1 June 2014.

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. As per shareholding pattern, government of India holds 60.64% stake in the firm as on 30 June 2015.

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