REC Ltd is down 3.5% at Rs.139.80 and though it has recouped a bit, it remains firmly in the red. Its LC is at 10% at Rs.130.40.
In a bid to meet its divestment target, like last year’s stake sale of 51% in HPCL to ONGC, this fiscal we have REC’s 52.63% stake being taken over by PFC.
PFC will buy the government’s 104 crore shares in REC at Rs 139.50 apiece, along with the transfer of management control. he total cost of acquisition is about Rs 14,500 crore.
With this, the Govt is just Rs.10,000 crpre short of meeting its Rs.80,000 crore divestment target. As at 28th Feb 2019, it had garnered Rs.56,473 crore and with this REC sale, it reaches Rs.70,973 crore.