REC spurts on buzz of diversification

Rural Electrification Corporation rose 6.43% to Rs 194.50 at 10:45 IST on BSE on report that the company is looking at diversifying to financing equipment manufacturing, energy efficiency schemes, power plants renovation and coal blocks development.

Meanwhile, the S&P BSE Sensex was up 192.48 points, or 0.65% to 29,768.22.

On the BSE, 6.78 lakh shares were traded in the counter so far, compared with average daily volumes of 7.31 lakh shares in the past one quarter. The stock had hit a high of Rs 196.20 so far during the day, which is also a 52-week high for the counter. The stock had hit a low of Rs 182 so far during the day. The stock hit a 52-week low of Rs 76.40 on 24 May 2016.

The stock had outperformed the market over the past one month till 10 April 2017, rising 19.99% compared with 2.17% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 42.44% as against Sensex's 9.95% rise.

The large-cap company has equity capital of Rs 1974.92 crore. Face value per share is Rs 10.

Rural Electrification Corporation (REC)'s chairman PV Ramesh was quoted by media as saying that REC is looking at diversifying from power sector lending to financing equipment manufacturing, energy efficiency schemes, power plants renovation and coal blocks development. Ramesh reportedly added the company is even considering changing its name to suit its diversification plans.

Rural Electrification Corporation's (REC) net profit rose 28.1% to Rs 1754.40 crore on 2% decline in operating income to Rs 5884.24 crore in Q3 December 2016 over Q3 December 2015.

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 60.64% stake in the company, as per the shareholding pattern as at 31 December 2016.

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