REC shares shrug off weakness on D-Street; what is driving the infra financier stock?
Kallam Transco is incorporate as a wholly-owned subsidiary of REC Power Development & Consultancy, a subsidiary of REC.
Rural Electrification Corporation (REC) shares were in high demand in an otherwise weak market on Thursday after a subsidiary of the state-run infrastructure finance company transferred its Beawar Transmission to Sterlite Grid 27, and incorporated a new wholly-owned subsidiary. The REC stock jumped by as much as Rs 9.5, or 3.7 per cent, to Rs 263.9 apiece on BSE after the announcements.
In a regulatory filing post-market hours on Wednesday, REC said its wholly-owned subsidiary REC Power Development and Consultancy transferred its entire shareholding of 50,000 shares in Beawar Transmission along with its assets and liabilities to Sterlite Grid 27 on the same day.
Sterlite Grid 27 emerged as the successful bidder selected through a tariff-based competitive bidding process to establish an inter-state transmission system for the "evacuation of power from REZ in Rajasthan (20GW)" under the Phase-III Part F project, REC said.
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Kallam Transco, the new company incorporated as a wholly-owned subsidiary of REC Power Development and Consultancy, has an authorised capital of Rs 5 lakh, and is yet to commence business operations. Kallam Transco will be transferred to the successful bidder along with all assets and liabilities.
What to do in REC shares?
Vikas Sethi of Sethi Finmart suggests buying REC shares for a price target of Rs 260 with a stop loss at Rs 250.