REC Board Approves Fund Raise Up To ₹1.55 Lakh Crore Via NCDs

REC Ltd. has announced plans to raise up to ₹1.55 lakh crore through the private placement of secured or unsecured non-convertible debentures/bonds. The approval came through a board resolution and will be taken up with shareholders at the upcoming Annual General Meeting. The amount will be raised in one or more tranches over a period of 12 months from the date of approval, depending on further clearance from the appropriate authorities.

REC Closure of Rajgarh III Power Transmission 

The board has also approved a proposal to wind up Rajgarh III Power Transmission Ltd., a special purpose vehicle (SPV) set up under REC Power Development and Consultancy Ltd. (RECPDCL), which is a wholly owned subsidiary of REC. This SPV was initially created to implement a power transmission project in Rajgarh, Madhya Pradesh, under recommendations from the National Committee on Transmission.

The Ministry of Power later decided to club the Rajgarh Phase III project with another initiative and de-notified the original project through a circular dated March 18, 2025. With the project no longer active, the SPV has no operational role, and REC has proposed to strike it off, subject to required approvals.

Transfer of Another SPV to Adani Energy

On May 30, 2025, REC completed the transfer of its shareholding in WRNES Talegaon Power Transmission Ltd. to Adani Energy Solutions Ltd. This included 50,000 equity shares and all associated assets and liabilities. The transaction was carried out at par value, with a professional fee of ₹14.55 crore and reimbursement of expenses, as per Ministry of Power guidelines.

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REC Q4FY25 Results

REC reported a consolidated net profit of ₹4,309 crore for Q4 FY25, a 5.6% increase from the same period last year. Net interest income stood at ₹5,877 crore, up 38% year-on-year.

REC Share Price Performance 

As of 10:12 AM on June 5, 2025, REC share price was trading at ₹403.80, a 0.72% increase, with a 25.94% decline over the past 6 months and a 12.17% drop over the past year.

Conclusion

The company is focusing on fund mobilisation and clearing inactive projects, following recent policy decisions and regulatory developments.

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