RECLTD

MUMBAI, May 19 (Reuters) - India's REC RECM.NS plans to raise 60 billion rupees ($702.5 million), which includes a greenshoe option of 50 billion rupees, selling bonds maturing in two years and eight months, and in 10 years and 11 months, three merchant bankers said on Monday.

The state-run company has invited coupon and commitment bids for both issues on Wednesday, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on May 19:

*Size includes base plus greenshoe for some issues

($1 = 85.4050 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)

(([email protected]))

By Khushi Malhotra and Dharamraj Dhutia

MUMBAI, April 30 (Reuters) - India's Power Finance Corp (PFC) PWFC.NS was forced to shelve its plan to raise funds through zero-coupon, deep-discount bonds after weak investor appetite led to unattractive pricing, merchant bankers said on Wednesday.

The state-run company had plans to raise 35 billion rupees ($414.3 million), which included 29 billion rupees of a greenshoe option, through bonds with a maturity of 10 years and one month.

The company received bids worth only around 58 billion rupees, a stark difference from the large bids that fellow state-run firm REC RECM.NS had received in September for a similar structured bond issue.

The cutoff at the base size would have been 6.54%, while that for the full size would have worked out to 6.90%, bankers added.

"There was hardly any difference between the yield for a regular bond and the zero-coupon bond, and hence it did not make much sense for the company to accept bids at such levels," a banker with a brokerage said.

Deep-discount bonds are generally issued at a more than 20%-25% discount to their face value and do not pay regular interest, a feature similar to zero-coupon notes that removes reinvestment risks.

"Since there is expected to be a lot of supply of such notes this year, investors were not chasing the auction, while broader caution with regard to the outlook for long-term yields also weighed," another banker said.

In March, PFC received the government's approval to raise up to 100 billion rupees through this rarely used corporate bond structure.

HUDCO got clearance earlier this month to raise 50 billion rupees for such an issuance, while half a dozen other companies have also approached the government for similar approvals.

In September, REC had raised 50 billion rupees through such an issue at a yield of 6.25%.

($1 = 84.4810 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected];))

MUMBAI, April 28 (Reuters) - India's REC RECM.NS has accepted bids worth an aggregate of 50 billion rupees ($587.5 million) for bonds maturing in 5 years and 1 month, and in 10 years and 1 month, three merchant bankers said on Monday.

The state-run company will pay an annual coupon of 6.87% and 6.86% on these issues, respectively, and had invited coupon and commitment bids for both earlier in the day, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on April 28:

*Size includes base plus greenshoe for some issues

($1 = 85.1120 Indian rupees)

(Reporting by Khushi Malhotra; Editing by Varun H K)

(([email protected]))

MUMBAI, April 24 (Reuters) - India's REC RECM.NS plans to raise 60 billion rupees ($702.4 million), including a greenshoe option of 50 billion rupees, through sale of bonds maturing in five years and one month and in 10 years and one month, three merchant bankers said on Thursday.

The company has invited coupon and commitment bids from bankers and investors on Monday, they said.

REC did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on April 24:

*Size includes base plus greenshoe for some issues

($1 = 85.4200 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected]))

Updates throughout

By Khushi Malhotra and Dharamraj Dhutia

MUMBAI, April 22 (Reuters) - At least six Indian state-run companies have sought government approval to issue deep-discount bonds, opting for a rarely used corporate bond structure to raise relatively cheaper funds, four sources aware of the matter said on Tuesday.

These companies are Indian Railway Finance Corp (IRFC) INID.NS, Indian Renewable Energy Development Agency (IREDA) INAR.NS, Power Grid Corp of India (PGC) PGRD.NS, REC RECM.NS, SIDBI and NABARD, the sources said.

REC has yet again sought permission to issue these bonds, after having raised 50 billion rupees ($587 million) similarly in September, when aggressive bids led to lower-than-expected yields.

REC confirmed the development but none of the other firms replied to Reuters emails seeking comment.

Deep-discount bonds are generally issued at a more than 20%-25% discount to their face value and do not pay regular interest, a feature similar to zero-coupon notes that removes reinvestment risks.

The surge in interest from companies to raise funds via these bonds is because they reduce overall borrowing costs in an environment when interest rates are seen falling further.

For investors, these bonds, though not tax-free, offer a significant long-term capital gains benefit. That, along with the rarity of such issues, is boosting demand for such notes, bankers said.

"At maturity, investors receive a profit which is taxable as per capital gains rates. This helps reduce the effective tax rate for investors making zero-coupon bonds attractive," said Nikhil Aggarwal, founder and CEO of online bond trading platform Grip Invest.

Last week, Housing and Urban Development Corp (HUDCO) HUDC.NS became the third state-run company to get approval to issue these bonds.

"HUDCO was the most likely candidate and they have got the approval and we expect REC and IRFC to be the next likely candidates," one of the sources said.

The sources said the government's approval may come in phases as they are not comfortable with a surge in the supply of zero-coupon bonds. The sources refused to be identified as they are not authorised to speak to the media.

HUDCO got approval to raise 50 billion rupees through bonds with a maturity of 10 years and one month, while Power Finance Corp (PFC) PWFC.NS was approved to raise 100 billion rupees in March. Both have until the end of March 2027 to raise these funds.

($1 = 85.1780 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected];))

MUMBAI, April 8 (Reuters) - India's REC RECM.NS has accepted bids worth an aggregate of 26.25 billion rupees ($305.4 million) for bonds maturing in 15 years, three merchant bankers said on Tuesday.

The company will pay an annual coupon of 7.02% and had invited coupon and commitment bids for both earlier in the day, they said.

REC did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on April 8:

*Size includes base plus greenshoe for some issues

($1 = 85.9650 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Varun H K)

(([email protected]; [email protected]))

MUMBAI, April 7 (Reuters) - India's REC RECM.NS plans to raise 30 billion rupees ($349.5 million), which includes 25 billion rupees of a greenshoe option, through the sale of bonds maturing in 15 years, three merchant bankers said on Monday.

The state-run company has invited coupon and commitment bids from bankers and investors for the issue on Tuesday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on April 7:

*Size includes base plus greenshoe for some issues

($1 = 85.8380 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sumana Nandy)

(([email protected]))

March 21 (Reuters) - REC Limited RECM.NS:

• REC LIMITED - BOARD TO MEET ON MARCH 26 TO CONSIDER MARKET BORROWING PROGRAMME

Source text: ID:nBSE7hMcgw

Further company coverage: RECM.NS

(([email protected];))

March 19 (Reuters) - REC Limited RECM.NS:

• REC - DIVIDEND 3.6 RUPEES PER SHARE

Source text: [ID:]

Further company coverage: RECM.NS

(([email protected];))

MUMBAI, March 17 (Reuters) - India's REC RECM.NS has accepted bids worth an aggregate of 57.80 billion rupees (nearly $666 million) for the sale of bonds maturing in three years and in 10 years, three merchant bankers said on Monday.

The state-run company will pay an annual coupon of 7.44% and 7.32%, respectively, on these issues and had invited coupon and commitment bids for both earlier in the day, they said.

The company confirmed the details of the bond issue on an email.

Here is the list of deals reported so far on March 17:

*Size includes base plus greenshoe for some issues

($1 = 86.8050 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Savio D'Souza)

(([email protected]))

MUMBAI, March 12 (Reuters) - India's REC RECM.NS plans to raise 60 billion rupees ($687.7 million), including a greenshoe option of 50 billion rupees, through the sale of bonds maturing in three years and 10 years, three merchant bankers said on Wednesday.

The state-run company has invited coupon and commitment bids for both the issues on Monday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on March 12

*Size includes base plus greenshoe for some issues

($1 = 87.2420 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sumana Nandy)

(([email protected]))

MUMBAI, Feb 25 (Reuters) - India's REC RECM.NS has accepted bids worth 19.95 billion rupees (nearly $229 million) for the sale of perpetual bonds, three merchant bankers said on Tuesday.

The state-run company will pay an annual coupon of 7.99% and had invited bids from bankers and investors earlier in the day, they said.

The bonds will have a call option at end of 10 years and every year thereafter, with the coupon rising by 50 basis points if the call option is not exercised at the end of the tenth year.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on February 25:

* Size includes base plus greenshoe for some issues

($1 = 87.1550 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Savio D'Souza)

(([email protected]))

MUMBAI, Feb 20 (Reuters) - India's REC RECM.NS plans to raise 30 billion rupees ($346.42 million), including a greenshoe option of 25 billion rupees, through the sale of perpetual bonds, three merchant bankers said on Tuesday.

The state-run company has invited bids from bankers and investors on Tuesday, they said.

The bonds will have a call option at end of 10 years, and every year thereafter, and the coupon would be raised by 50 basis points if the call option is not exercised at the end of tenth year.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on February 20:

*Size includes base plus greenshoe for some issues

($1 = 86.5990 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Janane Venkatraman)

(([email protected]))

Feb 18 (Reuters) - Power Grid Corporation of India Ltd PGRD.NS:

• UNIT TRANSFERS ENTIRE SHARES OF KHAVDA V-BIB2 POWER TRANSMISSION TO POWER GRID CORP

Source text: ID:nBSE55YXKL

Further company coverage: PGRD.NS

(([email protected];;))

MUMBAI, Feb 11 (Reuters) - India's REC RECM.NS has accepted bids worth 52.80 billion rupees ($608.5 million) for bonds maturing in 15 years and seven days and for the reissue of February 2027 bonds, three merchant bankers said on Tuesday.

The state-run company will pay an annual coupon of 7.28% on the 15-year bond issue and a yield of 7.45% on the reissue, and had invited bids from bankers and investors earlier in the day, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on February 11:

* Size includes base plus greenshoe for some issues

($1 = 86.7725 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

** Shares of REC RECM.NS climb 3% to 445.50 rupees after Q3 results; last up 1.9%

** Power financier reports 23% Y/Y rise in net profit, rev up about 16%

** CLSA says co is "well-placed" to deliver loan growth of 17% in FY25

** Avg rating on REC and peer Power Finance Corp PWFC.NS equivalent of 'strong buy' - LSEG data

** Stock gained 21.3% in 2024 vs PWFC's 17.2% climb

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

Feb 6 (Reuters) - REC Limited RECM.NS:

• REC DEC-QUARTER CONSOL NET PROFIT 40.76 BILLION RUPEES

• REC DEC-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 142.72 BILLION RUPEES

• REC Dividend 4.30 Rupees Per Share

(([email protected];))

MUMBAI, Feb 5 (Reuters) - India's REC RECM.NS plans to raise 60 billion rupees ($686.11 million), which includes a greenshoe option of 50 billion rupees, through a sale of bonds maturing in 15 years and seven days and through reissue of February 2027 bonds, three merchant bankers said on Wednesday.

The state-run company has invited coupon and commitment bids from bankers and investors on Tuesday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Feb. 5:

*Size includes base plus greenshoe for some issues

($1 = 87.4500 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Varun H K)

(([email protected]))

Jan 20 (Reuters) - REC Limited RECM.NS:

• RAJASTHAN PART I POWER TRANSMISSION TRANSFERRED TO ADANI ENERGY SOLUTIONS

• CONSIDERATION INCLUDES 150 MILLION RUPEES PROFESSIONAL FEE, REIMBURSEMENT OF EXPENSES

Source text: ID:nBSE97Yqh6

Further company coverage: RECM.NS

(([email protected];;))

** Shares of Power Finance Corporation PWFC.NS and REC RECM.NS rise as much as 5.6% and 4.9%, respectively

** ICICI Securities resumes coverage on PWFC with "Buy" rating, TP of 550 rupees; initiates coverage of RECM with "Buy" rating, TP of 600 rupees

** Both public sector power financiers to lead the charge in India's energy transition funding, with Central Electricity Authority estimating about 43 trillion rupees ($496.8 bln) of capex towards generation and transmission by 2032 - ICICI Securities

** Brokerage says power financing sector has enough macro tailwinds for the ensuing years in which PWFC and RECM each have ~20% market share

** Sees loan CAGR of ~14% and ~17% over FY24–27 for PWFC and RECM, respectively

** In 2024, PWFC rose 17.2% while RECM gained 21.3%

($1 = 86.5625 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

MUMBAI, Jan 13 (Reuters) - India's REC RECM.NS accepts bids worth 22.97 billion rupees ($265.61 million) for bonds maturing in 10 years, three merchant bankers said on Monday.

REC will pay an annual coupon of 7.20% on this issue and had invited coupon and commitment bids from bankers and investors earlier in the day, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Jan. 13:

*Size includes base plus greenshoe for some issues

($1 = 86.4800 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

(([email protected]))

MUMBAI, Jan 9 (Reuters) - India's REC RECM.NS plans to raise 40 billion rupees ($465.92 million), including a greenshoe option of 33 billion rupees, through the sale of bonds maturing in 10 years, three merchant bankers said on Thursday.

REC has invited coupon and commitment bids from bankers and investors on Monday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Jan. 9:

*Size includes base plus greenshoe for some issues

($1 = 85.8510 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

** Shares of Power Finance Corporation PWFC.NS and REC RECM.NS rise as much as 3% and 3.6%, respectively

** Emkay Research initiates coverage on both these public sector power financiers with "Buy" rating

** Sets TP of 600 rupees for PWFC, premium of 30.6% over last close; TP of 650 rupees for RECM, premium of 25.4%

** Sees PWFC and RECM well placed to capture debt-funding opportunities as national electricity plan envisages 33 trln rupees ($384.8 bln) capex in the power sector ecosystem over FY23-32

** PWFC and RECM have significantly benefited from resolution of legacy NPAs, which combined with improving cash flows from thermal power plants, positions both cos for enhanced profitability - Emkay

** Sees ~13%/~18% AUM CAGR for PWFC/RECM over FY24-27, along with ~19%/~20% ROE during FY25-27

($1 = 85.7525 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

MUMBAI, Dec 17 (Reuters) - India's REC RECM.NS has accepted bids worth an aggregate of 21.95 billion rupees ($258.50 million) for bonds maturing in 10 years and four months, and a reissue of the December 2039 bonds, three merchant bankers said on Tuesday.

REC has accepted bids worth 16.20 billion rupees on above 10-year bonds at a 7.10% coupon and bids of 5.75 billion rupees on a near 15-year bond reissue at a 7.1494% yield.

The state-run company invited bids from bankers and investors on Tuesday.

"Domestic bonds are integral to REC's broader strategic objectives and have proven to be a vital component of its financial strategy, offering a reliable and efficient means of raising substantial long-term funds," the company said in a statement.

Raising funds through domestic bonds is one of the major sources of REC's funding and is a regular activity, the company added.

Here is the list of deals reported so far on Dec. 17:

*Size includes base plus greenshoe for some issues

($1 = 84.9140 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Abinaya Vijayaraghavan)

(([email protected]))

MUMBAI, Dec 13 (Reuters) - India's REC RECM.NS plans to raise 65 billion rupees ($766.1 million), including a greenshoe option of 53 billion rupees, through sale of multiple tenor bonds, three merchant bankers said on Friday.

REC will issue bonds maturing in 10 years and four months, and reissue December 2039 bonds, and has invited bids from bankers and investors on Tuesday, they said.

The state-run company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Dec. 13:

* Size includes base plus greenshoe for some issues

($1 = 84.8450 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)

(([email protected]))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Dec 10 (Reuters Breakingviews) - India will have a new central bank boss this week, against market expectations. New Delhi appointed senior bureaucrat Sanjay Malhotra to the role on Monday, a day before the end of incumbent Shaktikanta Das’ term, defying speculation that he would get a second extension. The last-minute decision further complicates the newcomer’s thorny brief.

Malhotra is taking the reins at the Reserve Bank of India at a tricky moment. Growth is stalling in the world’s fifth-largest economy. He'll have to juggle the slowdown while trying to keep inflation within a target of 2-6%. And he'll have to do so amid rising global tensions such as wars in the Middle East and Ukraine, and Donald Trump’s imminent return to the White House.

The U.S. president-elect has threatened BRICS nations with a 100% tariff rate if they challenge dollar supremacy. That jeopardises RBI’s project of increasing trade settlements in the Indian currency. A strong dollar weighing on the rupee makes the central bank’s job harder, especially as India has been on and off the U.S. list of currency manipulators since 2018.

The 26th RBI governor’s profile ought to give some comfort. As the top taxman, he oversaw a revamp of India’s capital gains levies earlier this year. He also led state-backed lender REC RECM.NS, which finances energy projects, for 15 months until February 2022.

The choice of a second straight bureaucrat, rather than an academic or independent economist, also might suggest Prime Minister Narendra Modi's administration is aiming for some stability at the central bank. After all, in addition to Das, his deputy, who leads the monetary policy department, is likely to leave in January. And in October, new appointees took over the three seats on the rate-setting committee assigned to outsiders.

Trouble is, Malhotra’s views on monetary policy are unknown. His current stint at the finance ministry may suggest he's close to the government, which waited until the 11th hour of Das' term - and until just after an interest rate decision that didn't go its way. Such a messy handling of the succession at a key institution like the central bank is far from ideal.

Still, markets initially regarded Das as a yes-man when he started in 2018. That dissipated over his six-year tenure. The way Malhotra was installed means he will have to add overcoming a similar assumption to his long list of challenges.

Follow @ShritamaBose on X

CONTEXT NEWS

India appointed career bureaucrat Sanjay Malhotra as its new central bank governor on Dec. 9 in a surprise move. He succeeds Shaktikanta Das, the longest-serving Reserve Bank of India chief since the 1950s, on Dec. 11.

Currently revenue secretary to the finance ministry, Malhotra has worked in financial services, power, taxation and information technology during his three-decade career.

(Editing by Antony Currie and Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/
[email protected]))

** Power Finance PWFC.NS and REC RECM.NS rise 3.6% and 2%, respectively, leading public sector enterprises index .NIFTYPSE 1% higher

** State-owned PWFC and RECM fell 3.8% and 5% on Thursday, hurt by concerns over exposure from Adani group after U.S. prosecutors indicted Gautam Adani

** "We remain positive on PWFC and RECM and see the recent correction as an enhanced buying opportunity," says Bernstein, which has "outperform" on both stocks

** Says markets' concern seems to be around Solar Energy Corporation of India's tender won by Adani Green ADNA.NS-Azure; power purchase deal signed between 2021 and 2022

** Adds land and solar assets can be used for ADNA's other projects in case deal is terminated

** PWFC up 23% YTD; RECM up 21%, mirroring NIFTYPSE's 23.5% rise

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

By Nikunj Ohri

NEW DELHI, Nov 18 (Reuters) - India has revised guidelines for dividend payments, share buybacks and stock splits at state-run companies to improve capital management and bolster performance of their equities.

The government has asked state-run non-banking financial companies (NBFC) to pay a minimum annual dividend of 30% of their profit subject to any present legal provisions, according to guidelines by the federal finance ministry released on Monday.

Dividend payout limits for NBFCs are prescribed by the Reserve Bank of India based on their capital requirement and asset quality. Power Finance Corp PWFC.NS and REC Ltd RECM.NS are the biggest government-owned listed NBFCs.

Except for government-owned banks and insurance companies, all state-run firms government have to pay a dividend of 30% of profits or 4% of net worth, whichever is higher. Presently, public sector companies have to pay an annual dividend of 30% of profit or 5% of net worth, whichever is higher. The guidelines will be applicable from the current financial year ending March 31, 2025.

Firms whose share price is less than its book value for the past six months, have a net worth of 30 billion rupees ($355.51 million) and a cash balance of 15 billion rupees have been asked to consider share buybacks.

Past limits for share buybacks were a net worth of at least 20 billion rupees and cash and bank balance of 10 billion rupees.

The guidelines released on Monday require state-run firms to issue bonus shares if their reserves are 20 times share capital from five times earlier.

State-run firms have also been asked to opt for stock splits in case the share price exceeds 150 times their face value for the last six months from 50 times earlier. Stock splits help in improving trading volumes, making it attractive for retail investors.

($1 = 84.3860 Indian rupees)

(Reporting by Nikunj Ohri; Editing by Anil D'Silva)

(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))

Nov 14 (Reuters) - REC Limited RECM.NS:

• UNIT TRANSFERRED ENTIRE SHAREHOLDING OF ERES-XXXIX POWER TRANSMISSION TO TATA POWER COMPANY

• CONSIDERATION COMPRISES PROFESSIONAL FEE OF 150 MILLION RUPEES, REIMBURSEMENT OF EXPENSES

Source text: ID:nBSE4FWbZr

Further company coverage: RECM.NS

(([email protected];;))

Nov 11 (Reuters) - Power Grid Corporation of India Ltd PGRD.NS:

• REC - UNIT TRANSFERRED ENTIRE SHAREHOLDING OF TWO SUBSIDIARIES TO POWER GRID CORPORATION OF INDIA

Source text: ID:nBSE3spq2s

Further company coverage: PGRD.NS

(([email protected];))