REC aiming for 30% AUM in renewable energy
REC hopes to maintain a growth momentum of 20%, which could take the AUM to over ₹5,10,000 crore by the end of the year.
State-run power finance company, REC, is aiming for a bigger share of the ₹3 lakh crore opportunity in the renewable energy segment. The company plans to allocate 30% of its Asset Under Management (AUM) to this sector over the next few years.
The renewable energy capacity is currently at 180 GW and it could expand to 500 GW over the next seven years, Vivek Kumar Dewangan, the company's Chairman and Managing Director told CNBC-TV18.
At the beginning of the current year, REC's AUM was around ₹4,35,000 crore after a year-on-year growth of approximately 13%. However, the first half of the year witnessed a remarkable surge, with AUM growing by 20%.
"We hope to maintain this growth of 20%, and our AUM, at the end of this financial year, will be more than ₹5,10,000 crore," Dewangan stated.
Also Read | REC shares hit fresh 52-week high on positive outlook and target to achieve zero net NPA by FY25
REC had previously made a conservative estimate, projecting AUMs to reach about ₹10 lakh crore by the end of 2030. However, if the company sustains its 20% growth trajectory, AUMs are expected to reach this milestone by the year 2028 itself.
On December 1, REC announced that disbursements had crossed the ₹1 lakh crore mark in the fiscal year triggering a spike in the shares. It hit a new 52-week high of ₹394.8 earlier today.
The stock has tripled in value so far in 2023, with gains in every single month of 2023, barring February.
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(Edited by : Shweta Mungre)
First Published: Dec 4, 2023 4:34 PM IST
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