Rs 5 Dividend: Record Date On 28 June; Buy A Fresh Stake In This Maharatna PSU Stock?

REC is a "Maharatna" company that falls under the administrative purview of the Indian government's Ministry of Power. It is officially registered with the RBI as an Infrastructure Financing Company (IFC), Public Financial Institution (PFI), and Non-Banking Finance Company (NBFC). 89% of REC's Rs 5,09,371 Cr loan book comprised the state sector as of March 31, 24. The corporation has a net worth of Rs 68,783 Cr. Out of the 193 profit-making CPSEs, REC ranks seventh in terms of net profit according to the Public Enterprises Survey FY2022-23. In order to support State, Central, and Private Companies to develop infrastructure assets around the nation, REC offers long-term loans as well as other financial solutions.

REC Upcoming Dividend

"With reference to our earlier intimation dated April 30, 2024, wherein it was informed that the Board of Directors of REC Limited in its meeting held on April 30, 2024, had inter·aba considered and recommended final dividend @ Rs 5 / - (Rupees Five only) per equity share of Rs 10 each for the financial year 2023-24, subject to approval of shareholders in the ensuing Annual General Meeting (AGM). In compliance with the provisions of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Company has fixed Friday, June 28, 2024 as the 'Record date' for determining the eligibility of members for payment of final dividend for the financial year 2023-24. After approval of the shareholders in the ensuing AGM, the said final dividend will be paid/ dispatched within 30 days to those shareholders whose names appear (a) as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on June 28,2024 in respect of shares held in electronic form; and (b) as members in the register of members on June 28, 2024 in respect of physical shares," said the PSU company REC in a stock exchange filing.

"In this regard, it is pertinent to mention that as per the provisions of the Income Tax Act, 1961 and the rules made thereunder, dividend income is taxable in the hands of shareholders and the Company is required to deduct tax at source (TDS) at the time of making payment of dividend, at the rates prescribed under the Income Tax Act, 1961 and the rules made thereunder. However, in case a shareholder desires that his/ her tax should be deducted at lower rates or no tax should be deducted, then he/she is required to submit scanned copy of PAN, form 15G/ 15H & other requisite documents for the financial year 2024-25, unless already submitted, on or before July 31, 2024, through email at [e-mail]. with a copy marked to '[e-mail]'. No communication on the tax determination/ deduction of tax at lower rates shall be entertained after July 31, 2024," the company further informed stock exchanges.

REC Latest News

The proposal to raise up to Rs 1,45,000 crore through the private placement of secured and unsecured non-convertible bonds and debentures was reviewed and approved by the Board of Directors on May 31, 2024. The approval of the shareholders in this regard will be determined at the upcoming Annual General Meeting ('AGM'). The Board also accepted the proposal to raise the company's borrowing limit in any foreign currency equivalent from USD 20 billion to USD 24 billion while maintaining the company's total borrowing limit in Indian Rupees at Rs 6,00,000 crore.

REC Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "RECLTD is currently trading at 513.25 levels, showing range-bound movement between 490 and 537 levels. The stock is hovering near its short-term (20 Day) and medium-term (50 Day) EMA levels, suggesting a potential for significant movement upon breaking out of this range. The momentum indicator RSI is currently flat at 48.11, indicating a lack of strong directional momentum at the moment."

"For investors holding long positions, it is advisable to maintain these with a trailing stop loss set at 490 levels to safeguard against potential downside risk. Fresh investments should be considered only if the stock successfully breaks above the 537 level. Such a breakout could trigger a sharp upward move, targeting a price of 590. Investors should remain vigilant and ready to act on this potential breakout to capitalize on the stock's upward momentum while managing risk effectively," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.