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Public enterprise REC Limited, formerly Rural Electrification Corporation Limited, on Thursday announced that its board has recommended bonus shares issue in the ratio of 1:3 and has also fixed record date for the same.

“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.

Meanwhile, it also 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 annual general meeting (AGM). 

The final dividend is in addition to the interim dividends of 10.50 per equity share already declared and paid during the year in three tranches, thereby, making total dividend for FY 2021-22 to 15.30 per share, on the face value of 10 each.

State-owned REC Ltd posted a 14% rise in its consolidated net profit to 2,301 crore in the March quarter, mainly on the back of higher revenues. The consolidated net profit of the company was 2,017.8 crore in the quarter ended March 2021. Total income in the quarter rose to 9,653 crore from 9,215.9 crore in the same period a year ago.

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 down about 9% in 2022 so far. 

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