REC turns volatile after board's nod for raising funds

Rural Electrification Corporation lost 0.33% to Rs 241.85 at 14:42 IST on BSE after the company said its board of directors at a meeting held today, 28 April 2014, approved proposals for raising funds upto Rs 30000 crore during FY 2015.

The announcement was made during trading hours today, 28 April 2014.

Meanwhile, the S&P BSE Sensex was down 37.34 points or 0.16% at 22,650.73.

On BSE, so far 1.05 lakh shares were traded in the counter as against average daily volume of 1.57 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 2.08% at the day's low of Rs 237.60 so far during the day. The stock rose as much as 1.71% at the day's high of Rs 246.80 so far during the day. The stock had hit a 52-week high of Rs 252.30 on 23 April 2014. The stock had hit a 52-week low of Rs 146.15 on 5 August 2013.

The stock had outperformed the market over the past one month till 25 April 2014, advancing 10.8% compared with the Sensex's 2.87% rise. The scrip had also outperformed the market in past one quarter, jumping 35.03% as against Sensex's 7.36% rise.

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

Rural Electrification Corporation's board of directors at its meeting held today, 28 April 2014, approved proposal, subject to the approval of shareholders of the company by way of passing special resolutions through postal ballot (including e-voting) for issue of unsecured/secured non-convertible bonds/debentures through private placement upto Rs 30000 crore during FY 2015, as per the provisions of Section 42 of the Companies Act, 2013 read with the applicable rules made under the Companies Act, 2013. The Board also approved to increase in the overall borrowing limit to Rs 2 lakh crore in Indian Rupees and in any foreign currency equivalent to $6 billion as per the provisions of Section 180 (1) (c) of the Companies Act, 2013 read with the applicable rules made under the Companies Act, 2013. The Board approved creation of mortgage and/or charge on immovable and/or movable properties of the company, both present and future, for securing loan up to Rs 2 lakh crore in Indian Rupees and in any foreign currency equivalent to $6 billion or otherwise as per the provisions of Section 180 (1) (a) of the Companies Act, 2013 read with the applicable rules made under the Companies Act, 2013.

Rural Electrification Corporation's net profit rose 19.6% to Rs 1227.67 crore on 24% growth in total income to Rs 4405.17 crore in Q3 December 2013 over Q3 December 2012.

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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