Share price of REC closed higher today after the state-owned firm raised $500 million (around Rs 3,773 crore) by issuing overseas bonds. REC share price rose up to 14.73% to Rs 102.45 against the previous close of Rs 89.30 on BSE. REC share price closed 12.54% higher at Rs 100.50. The mid cap stock opened with a gain of 4.14% at Rs 93 today.
The stock stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
It has lost 25.47% in last one year and fallen 30% since the beginning of this year. However, the stock has risen 14.33% in one month. According to deal investors, this is the first ever overseas bond issue by an Indian company since the COVID-19 crisis.
REC said the notes (bonds) will mature on May 19, 2023 and all principal and interest payments will be made in US dollars. The settlement date for the Notes is expected to be May 19, 2020.
The issue was oversubscribed and saw bids of $2.5 billion, Arun Saigal, head of debt capital markets for Barclays Bank in India, said, adding that the yield at which the money is being raised is 4.86 per cent.
The company had embarked on the issue in February and the roadshows were also held immediately, but with the COVID-19 pandemic striking a heavy blow in March, it had to wait till Tuesday for the issue to be completed, he said.
REC, formerly Rural Electrification Corporation , is engaged in other financial services and activities-other credit granting. The company provides finance to power sector. It finances and promotes rural electrification projects all over the country. It provides financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects as are sponsored by them.