REC announces issue of bonus shares in 1:3 ratio, sets record date

“The Board of Directors has recommended the issue of bonus share to the shareholders of the company in the ratio of 1:3, i.e. one (1) bonus equity share 10- for each of three (3) existing equity shares each fully paid-up 10- Payment in full to each of the eligible members, subject to the approval of the shareholders through postal ballot,” REC informed in an exchange filing.

In addition, the company has fixed Thursday, August 18, 2022, the record date for ensuring shareholders’ eligibility for bonus shares. Bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.

Meanwhile, it also pointed out that the Board of Directors has set Wednesday, July 13, 2022 as the record date for determining the eligibility of members for the final dividend 2021-22. 4.80 per share, subject to approval of the shareholders at the ensuing AGM. Further, the above dividend, if declared at the ensuing AGM, shall be paid to the shareholders within 30 days from the date of the Annual General Meeting (AGM).

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

State-owned REC Ltd. reports 14% growth in its consolidated net profit 2,301 crore in the March quarter, mainly on the back of higher revenue. The consolidated net profit of the company was 2,017.8 crore in the quarter ended March 2021. Growing total income in the quarter 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 Ministry of Power. It finances its business with market borrowings of various maturities, which include bonds and term loans, in addition to foreign borrowings. Shares of REC are down about 9% so far in 2022.

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