The Navratna Company REC Ltd (Rural Electrification Corporation Limited) comes under the Ministry of Power and funds its business with market borrowings of various maturities that may include bonds, term loans, and foreign borrowings. Earlier this year in June, the board of directors of the company recommended bonus share issue in the ratio of 1:3 and fixed the record date as August 18, 2022 for the same.
The stock will trade ex-bonus on August 17, 2022 Check the key details below about bonus share issue:
1. REC Stock To Trade Ex-Bonus In 5 Days
The board of directors of REC held a meeting on June 30, 2022 regarding issue of bonus share and fixed August 18, 2022 as the record date for determining the eligibility of shareholders for bonus shares. The company stated in the BSE filing, "In furtherance of our letter dated June 17,2022, the Board of Directors has recommended the issue of Bonus shares to the shareholders of the Company in the ratio of 1:3, i.e. one (1) bonus equity share of ~101- each fully paid-up for every three (3) existing equity shares of ~101- each fully paid- up, to the eligible members by capitalizing a sum not exceeding ~658,30,60,0001- (Rupees Six hundred fIfty eight crore thirty lakh sixty thousand only) out of the sum standing to the credit of 'Securities Premium Account', subject to the approval of shareholders through postal ballot."
The stock will trade ex-bonus on August 17, 2022.
2. REC Dividend History
REC Ltd has a good dividend history and declared dividend for the past 5 years without fail. REC had declared an equity dividend of 153% amounting to Rs 15.3 per share for the year ending March 2022. The dividend yield is 12.3% if the current share price of 125.70 is considered.
3. REC Ltd Stock Outlook
The current market price of REC stock is Rs 137.10 apiece with a gain of 1.22%. The 52-week high is Rs 168.85 and the 52-week low is 109.65. The PE of the stock is 2.61 and the ROE is 20.10. The market capitalization is Rs 27,076 crore.
4. REC Ltd Overview
REC came into being in 1969 to articulate a response to the pressing exigencies of the nation. During the time of severe drought, the leaders sought to reduce the dependency of agriculture on monsoons by energizing agricultural pump-sets for optimized irrigation. Thereafter, REC ventured into newer paths and expanded our horizons to emerge today, as a leader in providing financial assistance to the power sector in all segments, be it Generation, Transmission or Distribution, according to the official website of the company.