EURO 20,00,00,000 capex: This multibagger stock hit 52-week high as it enters into a loan agreement with KfW Development Bank – know more here!

The stock gave multibagger returns of 165 per cent in just 6 months and over 270 per cent in 1 year.

Today, shares of REC Ltd surged 1 per cent to an intraday high & 52-week high of Rs 412.40 per share from its previous closing of Rs 408.25. At the closing bell, shares of the company were trading at Rs 408.30 per share, up 0.01 per cent.

REC Limited, a public sector undertaking under the Ministry of Power, has secured a EUR0 20,00,00,000 loan agreement with KfW Development Bank, Germany. This loan will be used to refinance long-term investments made by REC in the Indian power distribution sector under the Revamped Distribution Sector Scheme (RDSS).

This agreement reinforces the Indo-German Financial Cooperation, which committed EUR 200 million in 2019 to supporting reforms in the Indian electricity distribution sector. REC will utilize the loan to refinance up to 40 per cent of DISCOMs' capital expenditure on distribution infrastructure works under Part-A of the RDSS. This will ultimately contribute to enhanced operational capabilities and financial resilience of DISCOMs, aligning with the broader goals of the RDSS and the nation's power sector reforms.

This collaboration between REC and KfW marks a significant step in strengthening India's power distribution infrastructure and achieving its ambitious clean energy goals.

REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution.

The company enjoyed a period of significant shareholder reward in the past financial year 2022-2023. On August 8th, 2023, it declared bonus shares in the ratio of 1:3, followed by an interim dividend of 30 per cent or Rs 3 per equity share of Rs 10 each for the financial year 2023-2024, with the record date fixed, was Monday, August 14th, 2023. This generosity coincided with the company's share price hitting back-to-back 52-week highs, signifying a period of strong financial performance and investor confidence.

The company reported amazing numbers in its Quarterly Results (Q2FY24) and annual results (FY23). The stock gave multibagger returns of 165 per cent in just 6 months and over 270 per cent in 1 year. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.