REC Bonus share 2022: Shares of this public infrastructure finance company have started trading ex-bonus from Wednesday, August 17, 2022. The government-owned finance company, REC Ltd, has announced a bonus in the ratio of 1:3 for its shareholders.
The counter gained almost three per cent (2.9%) to Rs 106.05 per share in Wednesday’s intraday trade on the BSE on its ex-bonus date. The company has fixed the record date for bonus shares as August 18.
As per the scheme of arrangement of the arrangement, all eligible shareholders will be entitled to one bonus equity share of Rs 1O each fully paid-up for every three existing equity shares of Rs 1O each. The company would capilaize a sum of a little over Rs 658 crore bonus shares.
A Navratna company under the Ministry of Power, REC is a subsidiary of Power Finance Corporation (PFC).
“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 company said in a regulatory filing.
REC is a Navratna Central Public Sector Undertaking under the Ministry of Power. It is a leading infrastructure finance company with a net worth of over ₹50,000 crore (as on 31st March, 2022). It is engaged in financing projects in the complete power sector value chain, be it generation, transmission or distribution. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities through our extensive network of 22 offices across the country.