REC rises after board recommends 1:3 bonus issue

REC gained 1.09% to Rs 125.10 after the company announced that its board has recommended 1:3 bonus issue of shares.

As per the regulatory filing, the company's board recommended issuing one bonus equity share of Rs 10 each fully paid-up for every three existing equity shares of Rs 10 each fully paid up, to the eligible shareholders.

The board has fixed 18 August 2022 as a record date for ascertaining entitlement of eligibility of shareholders for bonus shares.

Further, the board has also fixed 13 July 2022 as the record date for determining the eligibility of members for final dividend 2021-22 of Rs 4.80 per share, subject to approval of shareholders at the ensuing AGM.

REC, a Navratna company under the Ministry of Power, provides financial assistance to the power sector in all segments. It funds its business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings.

The company recorded 10.8% rise in consolidated net profit to Rs 2,301.33 crore on a 4.7% increase in total income to Rs 9,653.27 crore in Q4 FY22 over Q4 FY21.

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