BackREC's record date for bonus shares issue next week. Key things to know
REC has fixed record date for ascertaining entitlement of Thursday, August 18, 2022 eligibility of shareholders for bonus shares
PremiumPublic enterprise REC Limited, formerly Rural Electrification Corporation Limited, had announced that its board has recommended bonus shares issue in the ratio of 1:3 and also fixed the record date for the same which is next week on Thursday, August 18, 2022. The stock will start trading ex-bonus on Wednesday, a day ahead of the record date.
“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 ₹10- each fully paid-up for every three (3) existing equity shares of ₹10- each fully paid- up to the eligible members, subject to the approval of shareholders through postal ballot," REC informed in an exchange filing.
Further, the company has fixed record date for ascertaining entitlement of Thursday, August 18, 2022 eligibility of shareholders for bonus shares. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.
Earlier this week, the company said it received shareholders' approval for the proposal to issue 65.83 crore bonus shares, utilising capital reserves of ₹658.3 crore.
The company in an exchange filing said that “two resolutions as set out in the Postal Ballot Notice dated July 8, 2022, of the Company have been approved by the shareholders with requisite majority." The resolutions were the approval to appoint Vivek Kumar Dewangan as its Chairman and Managing Director and to capitalize the reserves and issue Bonus shares to the shareholders of the company.
REC Limited is a Navratna company under the administrative control of the Ministry of Power. It funds its business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings, on its own. REC shares are up over a per cent in 2022 (YTD) so far, whereas the stock is down more than 6% in a year's period.
REC's consolidated net profit for Q1 FY23 came at ₹2,454 crore as compared to ₹2,268.6 in the same quarter last year. Its total income, however, fell to ₹9,506 crore in the quarter under review, from ₹9,555 crore in the year-ago quarter.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
