The state-owned REC Ltd will seek shareholders' approval to raise up to Rs 75,000 crore through issuance of bonds next week. The funds are proposed to be raised through issuance of debentures on private placement basis during a period of one year from the date of passing of the resolution, in one or more tranches, as per the AGM notice.
The limit of Rs 75,000 crore shall be within the overall revised borrowing limit. The annual general meeting (AGM) of shareholders is scheduled for September 16, 2022.
The shares of REC Ltd were trading 0.8 percent lower at Rs 106.2 on BSE at the time of writing.
REC will also seek shareholders' approval to authorize the board to mortgage/create charge on immovable and/or movable properties of the company, for securing loan up to Rs 4,50,000 crore.
The company had earlier in July received shareholders' approval for the proposal to issue 65.83 crore bonus shares, utilising capital reserves of Rs 658.30 crore.
The company had proposed to issue one new (bonus) share for holding three existing shares to shareholders, as per a postal ballot notice of the REC. The Board of Directors in its meeting held on June 30, 2022, had recommended the proposal for the issue of bonus shares to the shareholders of the company in the proportion of 1:3.
(With Agency inputs)
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