REC to invest Rs 99 cr in EESL

Rural Electrification Corporation Ltd has announced that the Board of Directors of the company at its meeting held on March 18, 2016, inter alia, had approved sale and transfer of 50,000 equity shares of Rs. 10 each of NRSS XXXVI Transmission Limited.

Rural Electrification Corporation Ltd has announced that the Board of Directors of the company at its meeting held on March 18, 2016, inter alia have approved sale and transfer of 50,000 equity shares of Rs. 10 each of NRSS XXXVI Transmission Limited, a wholly owned subsidiary of RECTPCL (also subsidiary of REC as per the provisions of Section 2(87) of the Companies Act, 2013) to successful bidder, i.e., M/s Essel Infraprojects Limited.

Further investment in the equity share capital of Energy Efficiency Services Limited (EESL) (a joint venture company of NTPC, REC, PFC & Power Grid Corporation of India Limited) upto an amount of Rs. 99 crore was approved. After the proposed investment, the shareholding of REC in EESL will increase from 28.79% (amounting to Rs. 47.50 crore) to 31.7% (amounting to Rs. 146.50 crore) of the post issue paid up capital of EESL.

Rural Electrification Corporation Ltd is currently trading at Rs. 170.8, up by Rs. 1.9 or 1.12% from its previous closing of Rs. 168.9 on the BSE.

The scrip opened at Rs. 169.9 and has touched a high and low of Rs. 170.95 and Rs. 169.25 respectively. So far 128360(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 16678.2 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 352.95 on 19-Mar-2015 and a 52 week low of Rs. 152.5 on 24-Feb-2016. Last one week high and low of the scrip stood at Rs. 170.75 and Rs. 162.5 respectively.

The promoters holding in the company stood at 60.64 % while Institutions and Non-Institutions held 33.4 % and 5.96 % respectively.

The stock is currently trading above its 200 DMA.