About REC LTD

REC Ltd is engaged in financing projects in the complete power sector value chain from generation to distribution. REC is a recognised 'Maharatna' company, which is controlled by the Ministry of Power (MoP), Government of India. It is registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). The company was incorporated in 1969 as Rural Electrification Corporation Private Limited' with the objective of financing rural electrification schemes in India. In 1974, it was authorised by the Ministry of Power and Irrigation to finance rural electrification under the 'Minimum Needs Programme. It launched Kutir Jyoti and Jal Dhara programmes for rural electrification in 1988. In 1993, the company signed an MOU with the MoP for the first time to achieve certain performance-related targets. REC was recognised with Mini Ratna- I status in 2002. The company went public after an Initial Public Offering (IPO) in 2008 and got listed on BSE and NSE. In 2003, the company’s name was changed to Rural Electrification Corporation Limited. In 2012, REC received the approval of the Reserve Bank of India (RBI) to issue bonds to raise up to USD 500 million. The company continued its growth trajectory and signed two separate agreements with Andhra Pradesh Power Generation Corporation Limited and Transmission Corporation of Andhra Pradesh Limited in 2015. The company’s name was again changed from Rural Electrification Corporation Limited'' to ''REC Limited'' in 2018. In 2021, REC Transmission Projects Company Limited was amalgamated with REC Power Distribution Company Limited, a wholly-owned subsidiary of REC. As of September 30, 2023, REC had a Loan Book of ₹4,74,275 crore, with 90% loans to the state sector. The Net Worth of the company stood at ₹63,117 crore. As per the Public Enterprises Survey FY2021-22, REC was ranked 8th in terms of Net Profit among all 188 profit-making CPSEs.

Business Segments

The company primarily offers long-term loans and other financing products to State, Centre and Private Companies for building infrastructure assets in the country. The company provides financing support to the following sectors:

• Power Sector Infrastructure
• Renewable Energy & New Technologies
• Infrastructure & Logistics Sector (Non-Power)

As of March 31, 2023, REC Power Development and Consultancy Limited (RECPDCL) (formerly known as REC Power Distribution Company Limited) is the only subsidiary company. It provides effective and economical services such as project implementation and consultancy services.

Corporate Actions

• In 2016, the company announced a bonus issue of shares in the ratio of 1:1 at a record date of September 28, 2016.
• REC announced a bonus issue of shares in the ratio of 1:3 at a record date of August 17, 2022.

Management Outlook

• The company is optimistic about the business growth due to the rising energy demand in a fast-growing economy.
• Recently, the Ministry of Power has permitted REC to lend money to the infrastructure and logistics sector, subject to certain limits. As a result, there is another large universe of financing avenues for REC.