Shares of REC Ltd and Power Finance Corporation (PFC) surged sharply on Wednesday after reports emerged that the Indian government is planning a $12 billion (₹99,000 crore) aid package to strengthen state power distribution companies (discoms) across the country.
REC shares jumped 5.16% to close at ₹388, while PFC shares advanced 4.03% to settle at ₹410.50 on the NSE. The rally came amid speculation that both state-run financing majors could play a pivotal role in the implementation of the proposed package.
Government’s $12 billion aid package
According to reports, the government’s financial assistance aims to bolster the operational and financial health of state power distributors.
- Value: Around $12 billion (₹99,000 crore).
- Target: State power distribution companies.
- Possible involvement: REC and PFC are likely to participate in the financing and management framework of the package.
This move is expected to help reduce outstanding debts, modernize distribution infrastructure, and improve power reliability across states.
Stock performance on October 29
- REC Ltd: Rose 5.16% to ₹388 from its previous close of ₹368.95.
- Day range: ₹369.70 – ₹388.30
- Market cap: ₹1.02 trillion
- P/E ratio: 5.92
- Dividend yield: 5.08%
- PFC Ltd: Gained 4.03% to ₹410.50 from ₹394.60.
- Day range: ₹393.25 – ₹411.00
- Market cap: ₹1.35 trillion
- P/E ratio: 5.57
- Dividend yield: 3.96%
Both stocks hit day highs in the final trading hour, reflecting strong investor optimism toward policy support for the power finance ecosystem.
Outlook
With the government’s proposed aid likely to be finalized soon, REC and PFC shares could remain in focus on Thursday, October 30. Analysts suggest that any formal confirmation of their participation could boost their lending outlook and strengthen earnings visibility in upcoming quarters.
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