1:3 Bonus Issue: Maharatna CPSE Issues Update On Dividend, Shares Trading At 14.74% Discount; FIIs Up Stake

Maharatna public sector undertaking, REC Ltd on Saturday announced a new update pertaining to its upcoming dividend. Board of Directors of the PSU was supposed to consider dividend today but now the meeting has been rescheduled to March 19 from March 16, 2024. The last trading price of REC Ltd shares on BSE is Rs 446.75 per share.

REC share is currently trading at a discount of 14.74% from the 52-week high price of Rs 524.00 per share. REC shares BSE offered return of 282% in last 1-year and soared 82% in last 6-months. Check details below:

REC Ltd Reschedules Meeting Of Board To Consider Dividend: As per the latest regulatory filing of REC dated March 15, “With reference to our earlier intimation dated March 5, 2024, this is to inform that the meeting of the Board of Directors ofREC Limited, which was earlier scheduled to be held on Saturday, March 16, 2024 has been postponed due to unavoidable circumstances and will now be held on Tuesday, March 19, 2024. As earlier informed, the proposal related to declaration of 3rd Interim Dividend, if any, for the fmancial year 2023-24, will inter-alia be considered at the Board meeting to be held on March 19, 2024.”

REC Sets Record Date For Dividend: The company fixed March 28, 2024 as the record date for interim dividend. The BSE filing stated, “The Company fixed Thursday, March 28, 2024 as ‘Record Date’ for the purpose of ascertaining the eligibility of the shareholders for payment of said 3rd Interim dividend, if declared by the Board of Directors.”

REC Shares Performance & Return: The 52-week high price of REC shares on BSE is Rs 524.00 per share and 52-week low price is Rs 113.15 per share. The company has a market capitalisation Rs 1,17,639.28 crore. REC shares declined 7.57% in last 1-month and gained 388% in last 2-years. In last 3-years, REC share zoomed 289% and 312% in last 5-years.

REC Technical: The score is 56.14 and stock is technically neutral. Stocks with score above 70 are considered as technically Strong and below 35 are considered weak. RSI is 44.3, RSI below 30 is considered oversold and above 70 overbought. MFI is 55.2, MFI below 30 is believed to be oversold and above 70 overbought. FII/FPI surged holdings from 20.36% to 20.60% in December 2023 quarter. Number of FII/FPI investors soared from 728 to 867 in December 2023 quarter, as per Trendlyne data.

REC Dividend History: As per the Trendlyne data, “REC Ltd announced 35 dividends since September 8, 2008. In last 12-months, REC announced an equity dividend amounting to Rs 10.85 per share. At the current share price of Rs 446.75, REC offers dividend yield of 2.43%.

REC Bonus History: REC offered 2 bonuses since September 28, 2016. The last Bonus that REC declared was in the ratio 1:3 with ex-bonus date as August 17, 2022, according to Trendlyne.

REC Financials: The PSU declared 18% growth in its Net Interest Income (NII) to Rs 4,159 crore for the October-December period. Its net profit for the December 2024 quarter soared by 14% from last year to Rs 3,269.3 crore. The Maharatna’s asset quality bettered sequentially, with gross NPA improving to 2.78% from 3.14% in September. Net NPA declared at 0.82% from 0.96% in the previous quarter. Its quarterly disbursements stood at Rs 46,358 crore, up 56% from last year.

About REC Ltd: REC is a Maharatna Central Public Sector Undertaking under the Ministry of Power. It is a leading infrastructure finance company. Its business activities involve financing projects in the complete power sector value chain, be it generation, transmission or distribution. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through its extensive network of 22 offices across the country. REC came into being in 1969 to articulate a response to the pressing exigencies of the nation. Domestically, it holds the highest credit ratings from CRISIL, ICRA, IRRPL and CARE and internationally it is rated at par with the sovereign ratings.