Power Finance Corporation Limited has informed the Exchange about Presidential Approval for the proposed merger of REC Limited into PFC
PFC · price
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Power Finance Corporation (PFC) has received Presidential Approval for its proposed merger with REC Limited, where REC will merge into PFC. Both are government-owned power sector NBFCs under the Ministry of Power. This is a significant step forward in combining two major public sector lenders. The merger will create one of India's largest non-bank financiers focused on the power sector. The swap ratio and exact timeline for shareholders are still expected to be finalised. No open offer obligation details have been disclosed in this filing.
Shareholders of both PFC and REC should expect further updates on the swap ratio and effective date soon. The merger is widely seen as value-accretive for PFC shareholders, while REC shareholders will receive PFC shares. This is positive for long-term institutional investors in both stocks.