REC rallies 16.9% in four sessions

Rural Electrification Corporation rose 4.02% to Rs 192.65 at 15:12 IST on BSE, with the stock extending recent gains triggered by the receipt of an acquisition amount aggregating to Rs 30.60 crore from L&T Infrastructure Development Projects & PGCIL.

Meanwhile, the S&P BSE Sensex was up 698.23 points or 3.62% at 19,968.29.

On BSE, 2.24 lakh shares were traded in the counter as against average daily volume of 2.51 lakh shares in the past one quarter.

The stock hit a high of Rs 193 and a low of Rs 185 so far during the day. The stock hit a 52-week low of Rs 146.15 on 5 August 2013. The stock hit a 52-week high of Rs 267.50 on 4 January 2013.

The stock had outperformed the market over the past one month till 6 September 2013, surging 22.61% compared with the Sensex's 2.87% rise. The scrip had, however, underperformed the market in past one quarter, declining 14.73% as against Sensex's 1.28% fall.

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

Shares of Rural Electrification Corporation (REC) have rallied 16.97% in four trading sessions from a recent low of Rs 164.70 on 3 September 2013.

REC during trading hours on 5 September 2013 announced that its wholly-owned subsidiary, REC Transmission Projects Company (RECTPCL), transferred its wholly-owned subsidiary, Kudgi Transmission (KTL), to L&T Infrastructure Development Projects. RECTPCL had received an acquisition price of Rs 15.19 crore from L&T Infrastructure Development Projects towards acquisition of KTL along with its all assets and liabilities.

KTL was incorporated for developing transmission system required for evacuation of power from Kudgi TPS (3 x 800 megawatts in phase-I) of NTPC.

REC announced after market hours on 3 September 2013, that RECTPCL, transferred its wholly-owned subsidiary, Vizag Transmission (VTL), to Power Grid Corporation of India (PGCIL). RECTPCL had received an acquisition price of Rs 15.41 crore from PGCIL towards acquisition of VTL along with its all assets and liabilities.

VTL was incorporated for establishing transmission system for system strengthening in southern region for import of power from eastern region.

REC's net profit surged 31.6% to Rs 1153.66 crore on 29.4% growth in total income to Rs 4001.38 crore in Q1 June 2013 over Q1 June 2012.

REC's main objective is to finance and promote rural electrification projects all over the country. The company provides financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects as are sponsored by them. The Government of India (GoI) owns 66.8% stake in REC (as per the shareholding pattern as on 30 June 2013).