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REC gains after transferring stake in UTL to PGCIL

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Capital Market
Last Updated : Mar 25 2014 | 11:57 PM IST

Rural Electrification Corporation rose 2.92% to Rs 218.30 at 12:58 IST on BSE after the company said it has transferred its stake in Unchahar Transmission to Power Grid Corporation of India.

The company made the announcement during trading hours today, 25 March 2014.

Meanwhile, the BSE Sensex was down 35.93 points, or 0.16%, to 22,019.55.

On BSE, so far 79,000 shares were traded in the counter, compared with an average volume of 1.47 lakh shares in the past one quarter.

The stock hit a high of Rs 218.60 and a low of Rs 210.05 so far during the day. The stock hit a 52-week high of Rs 245.20 on 20 May 2013. The stock 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 24 March 2014, rising 13.67% compared with the Sensex's 5.98% rise. The scrip had, however, underperformed the market in past one quarter, falling 1.30% as against Sensex's 4.86% rise.

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

Rural Electrification Corporation (REC) said that after receipt of approval of the Ministry of Power, 50,000 equity shares of Unchahar Transmission (UTL), held by REC Transmission Projects Company (RECTPCL) (a wholly-owned subsidiary of REC), have been transferred along with all assets and liabilities of UTL to Power Grid Corporation of India (PGCIL) and their nominees on 24 March 2014, for establishment of Transmission System for ATS of Unchahar TPS.

Net profit of REC rose 19.58% to Rs 1227.67 crore on 23.9% rise in operating income to Rs 4361.21 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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First Published: Mar 25 2014 | 1:03 PM IST

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