Moneycontrol
Last Updated : Dec 06, 2018 09:38 AM IST | Source: Moneycontrol.com

REC gains 1% as cabinet will consider proposal to sell its stake in co to PFC

Deutsche Bank has maintained buy call on REC with target at Rs 145 per share.

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Shares of REC gained 1 percent, while PFC shed 3 percent in the early trade on Thursday as government is going to consider the proposal to sell its stake in REC to PFC.

The Cabinet will Thursday consider the proposal for PFC acquiring entire government holding in state-owned REC, which will fetch the

government around Rs 15,000 crore.

The government held 57.99 percent in REC, and 65.64 percent in PFC at September-end. However, government holding in REC has come down

to 52.63 percent following stake sale through ETF.

At the current market price of Rs 105.10 a share, sale of 52.63 per cent government holding in REC will fetch around Rs 11,000 crore.

The government was initially considering to sell PFC to REC, however, on Wednesday the power ministry proposed PFC buying 52.63 percent

government stake in REC.

Deutsche Bank has maintained buy call on REC with target at Rs 145 per share.

There is a steady growth across all metrics and NIM expanded. Also asset quality improved further, while coverage ratio is at 46 percent, said

Deutsche Bank.

The loan growth was steady at 15 percent, while reported NIMs at 4 percent but unlikely to sustain into, it added.

REC has reported Q2 net profit at Rs 1,764 crore agaisnt Rs 1,408 crore. Revenue at Rs 7,286 crore against Rs 5,602 crore, YoY.

At 09:32 hrs Power Finance Corporation was quoting at Rs 90.95, down 1.46 percent, while REC was quoting at Rs 105.45, up 0.33 percent on the BSE.

With inputs from PTI
First Published on Dec 6, 2018 09:38 am
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