Intimation regarding Presidential Approval for the proposed merger of REC Limited into Power Finance Corporation Limited.
RECLTD · price
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REC Limited has received the Presidential Approval for its proposed merger into Power Finance Corporation Limited (PFC). Both REC and PFC are government-owned power sector non-banking finance companies. This approval is a critical milestone in the merger process for these central public sector enterprises. Following this approval, the merger scheme will move towards completion, including the share swap arrangement for REC shareholders. The combined entity will become one of India's largest power sector lenders.
REC shareholders will receive shares of PFC in exchange for their REC holdings as per the agreed swap ratio. The merged entity will have a larger balance sheet, stronger lending capacity, and potentially better valuations, though short-term trading may see volatility around the merger effective date.