The state-run Rural Electrification Corporation, REC has touched an intraday high/low of 129.90 and Rs 118.75, before closing the day at Rs 120.25, up by Rs 15.25 or 14.52% on the NSE. It traded with volumes of 11,16,71,336 shares and turnover was at Rs 1,364 crore.
Uma Shankar, Chairman, REC said that the company is likely to hold on to their current costs and margins and added that they expect to see continued growth of 25-30%. Shankar said REC will continue to maintain its past CAGR growth going ahead.
In an exclusive interview with CNBC-TV18, Shankar said that their ECB application was with the RBI and that they expect a favourable outcome. He added that they don’t anticipate a rise in the cost of borrowings which currently stands at 6.7%.
Shankar expects the company to have 25-30% profitability in the coming years. He said that REC is expecting business worth Rs 1.35 lakh crore over the next five years and added that higher volumes will ensure that profitability is maintained.
It had come out with an initial public offer of 15.61 crore shares of Rs 10 each and the issue got subscribed by 27.91 tio mes.
Source: Moneycontrol.com
Wednesday, March 12, 2008
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