REC revises market borrowing programme for FY25 to ₹1.8 lakh crore

REC Ltd on Friday, March 7, said its board of directors approved the revision of the company’s market borrowing programme from ₹1,6 lakh crore to ₹1.8 lakh crore for FY25.The funds under the revised market borrowing programme will be raised, from time to time, during the 2024-25 financial year, with the approval of the competent authority, it said.

On Thursday, March 6

the company’s Chairman and Managing Director Vivek Kumar Dewangan said the firm is expecting a payout of around ₹2,600 crore from the KSK Mahanadi project, with total proceeds expected to reach about ₹2,764 crore in March. The recovery from this project is expected to be more than 100%.
“We also got a very good resolution from the Bhadreshwar project, there also we are also getting very good write-back. For the Sinnar plant in Nasik, there also our recovery is also going to be very good and for Hiranmaye in West Bengal, there also our recovery is going to be very good,” Dewangan said.He estimates that the total write-back for the current financial year may range between ₹2,500 crore and ₹3,000 crore.

Earlier this week, brokerage firm CLSA said power financier stocks Power Finance Corporation (PFC) and REC Ltd are now part of its high-conviction outperform list. The brokerage added these two names to the list from its earlier rating of “outperform”. However, it cut its price target by up to 11% on these stocks.

REC Ltd shares were down 2.12% at ₹2,404.4 apiece at 2.10 pm on Friday, March 7. The stock has declined 31.42% in the past six months.

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