New Delhi: State-owned REC Limited has received shareholders' approval for the proposal to issue 65.83 crore bonus shares, utilising capital reserves of Rs 658.30 crore.
"…two resolutions as set out in the Postal Ballot Notice dated July 8, 2022, of the Company have been approved by the shareholders with requisite majority," a BSE filing stated.
The company had proposed to issue one new (bonus) share for holding three existing shares to shareholders, as per a postal ballot notice of the REC.
The Board of Directors in its meeting held on June 30, 2022, had recommended the proposal for the issue of bonus shares to the shareholders of the company in the proportion of 1:3 i.e. one new equity share of Rs 10 each for every three equity share(s) of Rs 10 each held by the shareholders as on the record date, by the capitalisation of a sum of Rs 6,58,30,60,000 out of the sum standing to the credit of 'Securities Premium Account' of the company.
The said amount is proposed to be applied in full for the issue of 65,83,06,000 new equity shares of Rs 10 each at par with bonus shares.
Consequently, the paid-up capital of the company will increase to Rs 2,633.22 crore — 2,63,32,24,000 equity shares of Rs 10 each.
The company has also received shareholders' approval to appoint Vivek Kumar Dewangan as its Chairman and Managing Director.
The Appointments Committee of the Cabinet (ACC) conveyed the appointment of Dewangan as Chairman and Managing Director (CMD) of REC on May 13, 2022.
Dewangan assumed the charge as REC CMD on May 17, 2022. He is an IAS officer of the Manipur cadre (1993 Batch).
He holds BE in Electronics from NIT, Bhopal and PG in Optoelectronics and Optical Communication from IIT, Delhi.
(With PTI inputs)