RECLTDNSEREC Limited· Financial InstitutionCriticalNeutral
Announced Wed, 10 Jun · 19:05 IST

Intimation regarding Presidential Approval for the proposed merger of REC Limited into Power Finance Corporation Limited.

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RECLTD · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close
-0.3%1-day move
₹348.45
prior close
₹348.50
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
-0.9-1.3-1.8-1.7-0.3+1.1+2.2+3.0+2.7+6.1+4.8+0.8
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AI summary

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.

Likely market impact

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.