PFC, REC stocks gain on tariff hike report

Nov 21 2011, 12:29 IST
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SummaryShares of PFC and REC gained on reports that TNEB may increase tariffs by 38 percent.

Shares of Power Finance Corp (PFC) and Rural Electrification Corp (REC) gained on media reports that Tamil Nadu Electricity Board (TNEB) has sought the regulator's approval to increase tariffs by 38 percent, said two institutional sales persons.

An analyst tracking the companies said shares of power sector financiers had fallen in last few months on concerns over deteriorating financial health of state electricity boards.

TNEB is one of the top loss makers in the country (accumulated losses of 407 billion rupees as of Mar '11) due to several years of no tariff increase. With the chief minister supporting the tariff hike we expect the petition to be approved by the regulator, said CLSA.

At 9:58 a.m., shares of PFC were up 0.75 percent at 162 rupees and REC 2.22 percent at 182 rupees.

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