Is REC’s Rs 3.60 Dividend Enough To Buy Amid Weak Charts As Record Date Approaches?

Under the administrative direction of the Ministry of Power, Government of India, REC Limited, formerly known as Rural Electrification Corporation Limited, is a public sector organization in India that finances and supports power projects, especially those related to infrastructure and the power industry. REC is a Navratna Central Public Sector Enterprise with its main office located in Gurgaon, Haryana. Although the PSU firm has set the record date for its fourth interim dividend for the fiscal year 2024-2025, investors may want to consider buying the stock now despite unfavorable technicals in order to be eligible for the dividend payment.

REC Dividend

"In compliance with the provisions of Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Board of Directors of REC Limited ("REC"/ "the Company") in its meeting held on March 19, 2025, considered and declared 4th interim dividend @ ₹3.60/- (Rupees Three and Paise Sixty only) per equity share of *10/- each for the financial year 2024-25. Further, the record date for the said interim dividend is Wednesday, March 26, 2025 and the said interim dividend shall be paid/dispatched on or before April 16, 2025 to those shareholders, whose names appear (i) as beneficial owners in the statement(s) furnished by the depository(ies) as on the close of business hours on March 26, 2025 in respect of shares held in electronic form; and (ii) as members in the register of members on March 26, 2025 in respect of physical shares," said REC in a stock exchange filing.

REC Dividend TDS Alert: Submit Form 15G/15H By This Date To Avoid Higher Tax Deduction

"It is further informed that as per the provisions of the Income Tax Act, 1961, dividend income is taxable in the hands of shareholders and the Company is required to deduct tax at source (TDS) at the time of making payment of dividend, at the rates prescribed under the Income Tax Act, 1961. In view of the same and in continuation of our earlier intimations dated June 18, 2024, July 27, 2024, October 26, 2024 and February 6, 2025, it is once again reiterated that in case a shareholder desires that his/ her tax should be deducted at lower rates or no tax should be deducted, then he/she is required to submit scanned copy of PAN, form 15G/ 15H & other requisite documents for the financial year 2024-25, on or before March 26, 2025, unless already submitted, through e- mail at virenders@alankit.com with a copy marked to recigr@alankit.com. No communication on the tax determination/ deduction of tax at lower rates shall be entertained after March 26, 2025," REC informed stock exchanges.

REC News

"In terms of Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that a meeting of the Board of Directors of REC Limited ("the Company") will be held on Wednesday, March 26, 2025 inter-alia to consider a proposal for approval of market borrowing programme of the Company for the financial year 2025-26," confirmed REC in a regulatory filing on March 21.

Furthermore, Smt. Parminder Chopra, CMD of Power Finance Corporation Limited (PFC), was given the additional responsibility of CMD of REC Limited on Friday. This appointment will take effect immediately and last for three months or until further directives are issued, whichever comes first. As a result, on March 21, 2025, Smt. Parminder Chopra took on the additional responsibility of the position of CMD, REC. "Further, as per the declarations received from Smt. Parminder Chopra, she is not debarred from holding the office of Director by virtue of any SEBI Order or any other such authority," REC stated in a release.

REC Share Price Target

"Rec has its support near 430 mark which is being held well in Tuesday's trading session. With the stock trading above its important support level, we feel it can go towards 460-470 odd levels as momentum catches pace. Keep a strict SL at 430 and hold to your positions as buying is expected to resume on lower levels," commented Riyank Arora, Technical Analyst at Mehta Equities Ltd.

"REC stock price is bearish on the Daily charts with strong resistance at 437. A Daily close below support of 421 could lead to a target of 360 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.