REC stock soars over 2% as board approves ₹1.55 lakh crore fundraiser via bonds; Check details

Shares of REC Ltd. surged as much as 2.21% to hit an intraday high of ₹409.75 apiece on the National Stock Exchange (NSE) on Thursday, June 5, following the PSU’s announcement of fundraising of ₹1.55 lakh crore through bonds.

A day prior, on June 4, REC’s board of directors approved raising ₹1.55 lakh crore of funds through private placement of “unsecured or secured non-convertible bonds or debentures”. The fundraiser is subject to shareholder approval at the ensuing Annual General Meeting (AGM).

“The funds will be raised, in one or more tranches, during a period of one year from the date of passing of the resolution by the shareholders, with the approval of competent authority,” REC said in a regulatory filing.

Besides approving the fundraiser, the company’s board of directors accepted the proposal to strike off Rajgarh III Power Transmission Limited, a special purpose vehicle (SPV) and a wholly-owned subsidiary of REC Power Development and Consultancy Limited (RECPDCL).

Previously, the National Committee on Transmission (NCT) had recommended RECPDCL, a REC subsidiary, as a bid process coordinator for the “Transmission system for Evacuation of Power from RE Projects in Rajgarh (1500 MW) SEZ in Madhya Pradesh - Phase III" project.

RECPDCL had then set up Rajgarh III Power Transmission Limited as an SPV to carry out the bid process, as per the tariff-based competitive bidding (TBCB) guidelines.

However, “the NCT has recommended clubbing the said project with another project. Accordingly, the Ministry of Power de-notified the project Rajgarh Phase III (1500 MW) project vide notification dated March 18, 2025,” the regulatory filing stated.

REC said that given the aforementioned notification, the SPV was proposed to be struck off, subject to requisite clearances, concurrences, or approval from the statutory or administrative authorities, whenever required.

REC stock performance

REC shares have been in the spotlight, gaining 0.5% over the week but losing 4.24% in May. Over two months, the stock has declined 5.72%. Further, it was down by 19.05% on a year-to-date basis.

At around 12:04 pm, the REC stock was trading 1.06% higher at ₹405.15, outperforming the NIFTY50 index, which was up 0.71%.