REC hits 52-week high on signing MoU with RailTel Corporation of India

The company has signed MoU to extend financial assistance up to Rs 30,000 crore for infrastructure projects to RailTel.

On Friday, REC Ltd shares closed at Rs 325.80, up by 2.47% from its previous closing of Rs 317.95 on the BSE.

REC has signed Memorandum of Understanding (MoU) with RailTel Corporation of India to extend financial assistance up to Rs 30,000 crore for infrastructure projects to be executed by RailTel in next 5 years. These projects encompass a wide range of areas, including data centre products and services, telecom & IT products and services, railways & metro projects, and the KAVACH train collision prevention system.

Additionally, MoU extends to the possibility of financing overseas ventures related to high-speed rail, metro, IT network, and the upgradation of railway network, as part of bilateral country discussions and infrastructure projects in Southeast Asia and Eastern Africa where RailTel is currently focusing.

Established in 1969, REC Ltd is engaged in providing financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects as are sponsored by them. REC plays an important role in partnering with MoP, GoI, in their major initiatives to improve the power distribution sector in the country.

The product portfolio of REC includes financial products and services like project term loan, short-term loan, equipment lease financing and consultancy services, etc., for various power projects in generation, transmission and distribution sector. REC’s clients mainly include state power utilities, private power sector utilities (including independent power producers), joint sector power utilities and power equipment manufacturers.

Today, the stock opened at Rs 319.95 and has touched a high and low of Rs 326.80 and Rs 317.25 respectively. The BSE group ‘A’ stock of face value Rs 10 has a 52-week high and low of Rs 326.80 and Rs 98.10, respectively. Last one week high and low of the scrip stood at Rs 326.80 and Rs 300.50 respectively. The current market cap of the company is Rs 85,790.44 crore.

The promoters holding in the company stood at 52.63%, while Institutions and Non-Institutions held 34.50% and 12.87% respectively.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.