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Business Insider
05-07-2025
- Business
- Business Insider
REC Limited (RECLTD) Gets a Buy from Macquarie
In a report released on July 3, Suresh Ganapathy from Macquarie maintained a Buy rating on REC Limited, with a price target of INR555.00. The company's shares closed yesterday at INR393.65. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Ganapathy is a 2-star analyst with an average return of 2.5% and a 50.00% success rate. Ganapathy covers the Financial sector, focusing on stocks such as Shriram Finance Limited, Bajaj Finance Limited, and Bank of Baroda. In a report released on July 2, Bernstein also maintained a Buy rating on the stock with a INR505.00 price target. Based on REC Limited's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of INR68.45 billion and a net profit of INR43.1 billion. In comparison, last year the company earned a revenue of INR116.42 billion and had a net profit of INR40.79 billion
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Business Standard
23-06-2025
- Business
- Business Standard
Yield on AAA-rated PSU bonds breaches 7% as long-term rates firm up
Yields on 10-year AAA-rated public sector undertaking (PSU) bonds in India's corporate bond primary market exceeded the 7 per cent threshold on Monday, after a gap of three months, as long-term rates continue to rise. Notably, REC Limited raised ₹2,865 crore through 10-year bonds at a coupon rate of 7.06 per cent. Additionally, the company secured ₹4,000 crore via 2-year bonds at a 6.60 per cent coupon rate. 'REC's 10-year issuance today saw a cut-off of 7.06 per cent confirming the firming yield trend. Despite the upward movement, limited fresh supply of 10-year bonds and sustained investor demand in REC bond have helped keep the coupon levels orderly,' said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP. Meanwhile, the yield on short term bonds -- particularly up to the 5-year segment -- have been witnessing strong demand post monetary policy review outcome earlier this month. These instruments are typically bought for interest income rather than capital gains. A combination of monetary policy easing, abundant liquidity infusion in the system, and Cash Reserve Ratio (CRR) cut by the Reserve Bank of India (RBI) in the recent monetary policy review weighed on the short term bond yields, said dealers. 'There is demand for short term bonds after the policy, but the rates on papers of tenure 10 year and above are rising, and they are expected to harden further. The 10-year government bond yield touched 6.40 per cent today (Monday), which eventually reflects in the corporate bond primary market,' said a dealer at a state-owned bank. The yield spread between 3-year government bond and benchmark 10-year bond has increased by more than three-fold to 48 basis points, against 15 bps at the start of the financial year, whereas, in the current calendar year the yield spread has widened by twelve times. Since January, the RBI has injected ₹9.5 trillion of durable liquidity into the banking system. This infusion helped shift liquidity conditions from a sustained deficit since mid-December to a surplus by end of March. The transition was reflected in the muted demand for daily VRR auctions and elevated SDF balances, which averaged ₹2.0 trillion during April–May. Of the total liquidity injection, ₹5.2 trillion came through open market purchases (including secondary market purchases), while long term VRR auctions and USD/INR buy-sell swaps added ₹2.1 trillion and ₹2.2 trillion, respectively. The net liquidity in the banking system was in a surplus of ₹2.41 trillion as of Sunday, latest data by the RBI showed. The domestic rate setting panel cut the banks' cash reserve ratio (CRR) by 100 basis points to 3 per cent of their net demand and time liabilities in four tranches starting September. The reduction in CRR is expected to infuse ₹2.5 trillion of primary liquidity in the banking system by the end of November.
Business Standard
18-06-2025
- Business
- Business Standard
REC intimates on Subsidiary incorporation
REC has announced that Rajgarh Neemuch Power Transmission Limited has been incorporated as Wholly Owned Subsidiary of REC Power Development and Consultancy Limited (HRECPDCL"- a Wholly Owned Subsidiary of REC Limited). The said company is also subsidiary company of REC Limited, in terms of the provisions of Section 2(87) of the Companies Act, 20l3 .Powered by Capital Market - Live News
Time of India
05-06-2025
- Business
- Time of India
REC gets CBDT nod to issue ₹5,000 crore Zero Coupon Bonds
New Delhi: REC Limited , a Maharatna Central Public Sector Enterprise under the Ministry of Power, has received approval from the Central Board of Direct Taxes (CBDT) to issue Zero Coupon Bonds (ZCBs) aggregating ₹5,000 crore. The bonds will have a tenure of ten years and six months. According to a notification dated May 30, 2025, issued by the Department of Revenue, Ministry of Finance, the approval allows REC to issue five lakh ZCBs. These instruments will be issued at a deep discount and redeemed at face value upon maturity, offering tax advantages to investors under the Income-tax Act, 1961. In FY 2024–25, REC had issued CBDT-notified ZCBs worth ₹5,000 crore, which received subscription nearly seven times the offered amount. That issue was priced at a yield of 6.25 per cent, approximately 100 basis points lower than the prevailing market rates . "The success of the previous issue enabled REC to tap into a new segment of investors while further diversifying its funding sources at competitive rates," the company stated. REC, which functions as a leading non-banking financial company (NBFC), said it remains committed to exploring innovative financial instruments for efficient fund mobilisation to support India's growing energy infrastructure .
Business Upturn
04-06-2025
- Business
- Business Upturn
REC board approves fundraise of Rs 1.55 lakh crore via bonds; to strike off Rajgarh III Power Transmission subsidiary
By Aditya Bhagchandani Published on June 4, 2025, 16:05 IST REC Limited's board, in a meeting held on June 4, approved a significant fundraising proposal and a strategic corporate cleanup move. The company announced plans to raise up to Rs 1,55,000 crore through the private placement of unsecured or secured non-convertible bonds/debentures. This capital raise will be carried out in one or more tranches over a period of one year, subject to shareholder approval at the upcoming Annual General Meeting. The board also approved the proposal to strike off one of its project-specific subsidiaries — Rajgarh III Power Transmission Limited. The subsidiary, incorporated by REC Power Development and Consultancy Limited (RECPDCL) for a transmission project in Madhya Pradesh, is now being dissolved following a de-notification of the project by the Ministry of Power. The move follows a recommendation by the National Committee on Transmission (NCT) to club the project with another, rendering the special purpose vehicle redundant. The company clarified that the strike-off is subject to necessary statutory and administrative clearances. The Board meeting commenced at 2:00 PM and concluded at 3:40 PM. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
