REC shares rise after board approves fundraising up to ₹1.55 lakh via bonds

REC share price climbed 2 per cent after the company's board gave a nod to fundraise and strike off SPV

REC share price gained 2.1 per cent in trade on Thursday, June 5, 2025, logging a day's high at ₹409.7 per share on BSE. The stock advanced after the company's board approved to raise up to ₹1,55,000 crore via bonds and struck off a project specific special purpose vehicle (SPV) named Rajgarh III Power Transmission.

 

At 10:33 AM, REC shares were trading 0.74 per cent higher at ₹403.9 per share on the BSE. In comparison, the BSE Sensex was up 0.41 per cent at 81,332.28. The market capitalisation of the company stood at ₹1,06,355.92 crore. The 52-week high of the stock was at ₹653.9 per share and the 52-week low of the stock was at ₹357.45 per share.   Catch Stock Market Updates Today LIVE

 

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REC fundraising details

State-owned company's board on Wednesday, June 4, 2025, approved the proposal to raise funds via bonds. 

 

"Proposal of raising of funds through Private Placement of Unsecured / Secured Non-Convertible Bonds / Debentures of up to ₹1,55,000 crore, subject to the approval of shareholders in the ensuing Annual General Meeting ("AGM"). The funds will be raised, in one or more tranches, during a period of one year from the date of passing of resolution by the shareholders, with the approval of Competent Authority," the filing read.

 

The board members also gave a nod to striking off a project-specific SPV.  ALSO READ | What's driving IDBI Bank shares higher? Stock zooms 36% in 4 weeks

Why strike off SPV?

The National Committee on Transmission (NCT) had recommended RECPDCL for selection of the Transmission Service division for the interstate transmission project namely, "Transmission system for Evacuation of Power from RE Projects in Rajgarh (1500 MW) SEZ in Madhya Pradesh - Phase III" 

 

According to Tariff-Based Competitive Bidding (TBCB) guidelines, RECPDCL incorporated an SPV company to carry out the bid process. Subsequently, the NCT has recommended clubbing the said project with another project. 

 

Accordingly, the Ministry of Power de-notified the project Rajgarh Phase III (1500 MW) project vide notification dated March 18, 2025. In view of the above, the said SPV is proposed to be strike off subject to requisite clearances/ concurrences/ approvals of Statutory/ Administrative Authorities, wherever required.