PFC-REC merger explained: Swap ratio, rationale, other key details as merger set to create Rs 11 lakh cr power financing giant

PFC and REC boards have approved a merger scheme with a share swap ratio of 88 PFC shares for every 100 REC shares, subject to shareholder, Sebi, NCLT and other statutory approvals. The combined entity will emerge as an around Rs 11 lakh crore power financing giant, with PFC's FY26 consolidated net worth at Rs 1.73 lakh crore and REC's at Rs 85,054 crore. PFC already holds 52.63 percent in REC following a government stake transfer, and the merger aims to consolidate balance sheets, strengthen borrowing capacity and position the entity as the government's primary vehicle for power sector and energy transition financing.