RECLTDNSEREC Limited· Financial InstitutionMediumNeutral
Announced Wed, 24 Sept · 18:05 IST

Intimation of sale and transfer of project specific SPV/ Subsidiary.

Strategic Transactions View source PDF

RECLTD · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

REC Limited, through its wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL), has sold its entire stake (50,000 equity shares) in Davanagere Power Transmission Limited to Power Grid Corporation of India Limited. The transfer was completed on September 24, 2025, at par value along with all assets and liabilities. The buyer was selected through a tariff-based competitive bidding process as per Ministry of Power guidelines. The consideration received is a professional fee of ₹5 crore plus reimbursement of expenses. The contribution of this SPV to REC's turnover and net worth is stated as negligible.

Likely market impact

This is a routine divestment of a project-specific SPV (a single transmission asset) that does not affect REC's core power finance business. The financial impact on REC is negligible, and the SPV ceases to be a subsidiary. The transaction follows the government's competitive bidding framework, so it should not materially affect shareholders or the stock price.