REC shares hit all-time high on D-Street—here's what is keeping the investors keen

REC share price today BSE: Shares of state-owned REC on Monday, June 3 clocked an all-time high on D-Street after the PSU's board approved raising the borrowing limit in foreign currency to USD 24 billion from USD 20 billion. The PSU stock jumped as much as 13 per cent to a record high of Rs 607.65 on BSE, halting the four-day declining trend. The counter closed at Rs 604.55, up 12.44 per cent on BSE. 

However, the overall borrowing limit in Indian rupees has been retained at Rs 6,00,000 crore, the company said in an exchange filing dated May 31.

The company's regulatory filing read, " "Proposal of retaining the overall borrowing limit of the company in INR at Rs 6,00,000 crore and increase the borrowing limit in any foreign currency equivalent from USD 20 billion to USD 24 billion notwithstanding that the moneys to be borrowed..." 

REC's board has also approved raising up to Rs 1,45,000 crore through private placement of unsecured/secured non-convertible bonds/debentures."

The funds will be raised, in one or more tranches, from time to time, during one year from the date of passing of resolution by the shareholders in the ensuing annual general meeting.

In addition, the company has approved appointment of Harsh Baweja as Director (Finance) (Additional Director) and Chief Financial Officer of REC with effect from May 14, 2024.

What does REC do?

REC was incorporated in 1969, against the backdrop of severe drought and famine in the country, to energise agricultural pump sets for irrigation purposes, thereby reducing the dependency of agriculture on monsoons. 

Over the years, REC has evolved and expanded its financing mandate to cover the entire power infrastructure sector. It has recently diversified into the non-power infrastructure sector, comprising roads and motorways, metro rail, airports, and IT communication, among others. 

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