REC Stock Gains 2.95% As The Board Approves ₹1.55 Lakh Crore Fundraising Plan
By Ankur Chandra | Updated at: Jun 6, 2025 04:24 PM IST
Gurugram | June 6, 2025 — Shares of REC Limited (NSE: RECLTD) climbed 2.95% on Friday to close at ₹415, as the board announced a few major strategic decisions including the approval of ₹1.55 Lakh Crore fundraising via private placement of bonds, and and proposed the strike-off of Rajgarh III Power Transmission Ltd (due to operational changes).
The stock has gained close to 4% during the week. Fundraising is critical for the company’s long-term strategic moves, including new green energy projects, transmission and distribution upgrades, smart grid infrastructure, and core rural electrification infrastructure development.
Key Highlights of the Board Meeting
₹1.55 Lakh Crore Fundraising via Bonds
The Board of Directors approved a proposal to raise ₹1,55,000 crore through the private placement of unsecured or secured non-convertible debentures (NCDs) or bonds. The fundraising will occur in one or more tranches over the next year, subject to shareholders’ approval. This will improve the company’s lending book massively, especially for infrastructure and green energy projects and financing.
Strike-Off of Rajgarh III Power Transmission Ltd
The Board also agreed to strike off the project-specific Special Purpose Vehicle (SPV) — Rajgarh III Power Transmission Limited, a wholly-owned subsidiary of REC Power Development and Consultancy Ltd (RECPDCL), itself a 100% subsidiary of REC.
The SPV was originally formed for a transmission project in Madhya Pradesh (Rajgarh SEZ 1500 MW Phase III) under the Tariff-Based Competitive Bidding mechanism. However, the SPV has become redundant following project restructuring and de-notification by the Ministry of Power (March 18, 2025).
Stock Market Performance
| Metric | Value |
|---|---|
| Current Price | ₹415.00 |
| Change (%) | +2.84% |
| 52-Week High (Jul 12, 2024) | ₹654.00 |
| 52-Week Low (Feb 28, 2025) | ₹357.35 |
| Market Cap | ₹1,09,133.97 Cr |
| Traded Volume | 111.64 lakh shares |
| Free Float Market Cap | ₹51,548.36 Cr |
| P/E Ratio | 6.68 |
Today’s bullish move positions REC closer to its recent highs, indicating market optimism around its capital expansion roadmap.
Strategic Outlook
Inflow of such a high amount underlines REC’s management’s effort towards balance sheet and operational improvements. As the GOI Maharathna, the company’s strategic goals align with its critical position in the country’s energy transition, especially for green energy and infrastructure development.
About REC Limited:
REC Limited, a Maharatna CPSE under the Ministry of Power, Government of India, finances power sector projects, including generation, transmission, and distribution infrastructure. The company is also expanding its footprint into non-power infrastructure financing.
This update adheres to SEBI disclosure guidelines and reflects official Board proceedings.
REF: https://www.nseindia.com/get-quotes/equity?symbol=RECLTD
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