Intimation of incorporation of subsidiary company.
RECLTD · price
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REC Limited announced the incorporation of a new wholly owned subsidiary, Ananthapuram II Power Transmission Limited, on June 26, 2025. The new entity is a wholly owned subsidiary of REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly owned subsidiary of REC. It was set up with a nominal authorised and paid-up capital of ₹5 lakh and is yet to commence business. The SPV has been created for the Transmission System for Integration of Ananthapuram-II Renewable Energy Zone Phase-II (3GW capacity), a project allocated to RECPDCL as Bid Process Coordinator (BPC) by the Ministry of Power via a Gazette Notification dated March 27, 2025. Under the standard Tariff Based Competitive Bidding (TBCB) process, the SPV will eventually be transferred to the successful bidder along with all assets and liabilities. The promoter/promoter group have no interest in the entity beyond their shareholding.
This is a routine regulatory step in REC's transmission project pipeline and not a new strategic development. REC's financial exposure is limited to a nominal ₹5 lakh share subscription, and the SPV will be handed over to the eventual winning bidder, so there is no material impact on REC's earnings, assets, or stock price.