REC Limited’s board, in a meeting held on June 4, approved a significant fundraising proposal and a strategic corporate cleanup move. The company announced plans to raise up to Rs 1,55,000 crore through the private placement of unsecured or secured non-convertible bonds/debentures. This capital raise will be carried out in one or more tranches over a period of one year, subject to shareholder approval at the upcoming Annual General Meeting.
The board also approved the proposal to strike off one of its project-specific subsidiaries — Rajgarh III Power Transmission Limited. The subsidiary, incorporated by REC Power Development and Consultancy Limited (RECPDCL) for a transmission project in Madhya Pradesh, is now being dissolved following a de-notification of the project by the Ministry of Power. The move follows a recommendation by the National Committee on Transmission (NCT) to club the project with another, rendering the special purpose vehicle redundant.
The company clarified that the strike-off is subject to necessary statutory and administrative clearances. The Board meeting commenced at 2:00 PM and concluded at 3:40 PM.
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