This Mid-Cap Navratna Finance Stock Announces Bonus Share, Sets Record Date For Final Dividend

The Navratna Company REC Ltd (Rural Electrification Corporation Limited) comes under the Ministry of Power and funds its business with market borrowings of various maturities that may include bonds, term loans, and foreign borrowings. The company's board has recommended bonus share issue on June 30 in the ratio of 1:3 apart from fixing the record date.

The company has also fixed record date for final dividend for the financial year 2021-2022. Check the key details below about bonus share issue:

1. REC Board Approves Bonus Share Issue

The board of directors of REC held a meeting on June 30, 2022 regarding issue of bonus share and fixed August 18, 2022 as the record date for determining the eligibility of shareholders for bonus shares.

The company stated in the BSE filing, "In furtherance of our letter dated June 17,2022, 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."

2. REC Board Fixes Record Date For Final Dividend

The board of REC in their meeting held on June 30, 2022 also fixed record date for ascertaining the eligibility of shareholders for final dividend of Rs 4.80 per share.

The board of directors in their BSE filing said, "It is informed that the Board of Directors has fixed Wednesday, July 13, 2022 as the Record date for determining the eligibility of members for fInal dividend 2021-22 of ~4.80 per share, subject to approval of shareholders at the ensuing AGM. Further, the aforesaid dividend, if declared at the ensuing AGM, will be paid to the shareholders within 30 days from the date of AGM."

3. REC Dividend History

REC Ltd has a good dividend history and declared dividend for the past 5 years without fail. REC had declared an equity dividend of 153% amounting to Rs 15.3 per share for the year ending March 2022. The dividend yield is 12.3% if the current share price of 125.70 is considered.

4. REC Ltd Stock Outlook

The current market price of REC stock is Rs 125.70 apiece with a gain of 1.58%. The 52-week high is Rs 168.85 and the 52-week low is 109.65. The PE of the stock is 2.47 which is lower than the sector PE of 3.28. The EPS is 50.81. The market capitalization is Rs 24,824 crore.

5. REC Ltd Overview

REC came into being in 1969 to articulate a response to the pressing exigencies of the nation. During the time of severe drought, the leaders sought to reduce the dependency of agriculture on monsoons by energizing agricultural pump-sets for optimized irrigation. Thereafter, REC ventured into newer paths and expanded our horizons to emerge today, as a leader in providing financial assistance to the power sector in all segments, be it Generation, Transmission or Distribution, according to the official website of the company.