Intimation of incorporation of subsidiary company.
RECLTD · price
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REC Limited has informed exchanges that Davanagere Power Transmission Limited was incorporated on June 26, 2025 as a Wholly Owned Subsidiary of REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly owned subsidiary of REC Limited. The new company was set up with an authorized and paid-up capital of ₹5,00,000 each, and is yet to commence business. The purpose is to execute a transmission system strengthening project at Davanagere for integration of renewable energy generation, allocated to RECPDCL as Bid Process Coordinator by the Central Electricity Authority under a Gazette Notification dated May 8, 2025. RECPDCL subscribed to 100% of the equity share capital at face value in cash. The SPV will eventually be transferred to the successful bidder selected through the Tariff Based Competitive Bidding (TBCB) process.
This is a routine operational activity for REC's subsidiary RECPDCL in its role as Bid Process Coordinator for power transmission projects. The newly formed SPV is expected to be transferred to a successful bidder after competitive bidding, so it is unlikely to have a material impact on REC Limited's financials or stock price. It reinforces RECPDCL's ongoing role in India's power transmission infrastructure development.