Outcome of Board Meeting held on May 16, 2026.
RECLTD · price
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The Board of Directors of REC Limited has reserved the proposal for merger of REC into Power Finance Corporation Limited (PFC) under Sections 230-232 of the Companies Act, 2013. The merger requires approval from the Hon'ble President of India as per the company's Articles of Association. The share exchange ratio will be determined by appointed valuers, and the merged entity will maintain its 'Government Company' status. Upon completion, all REC assets and liabilities will transfer to PFC, and REC will stand dissolved. Additionally, the Board appointed Mr. Mohammed Azaz Ali, currently General Manager (Finance), as Chief Compliance Officer effective May 17, 2026, until his superannuation on June 30, 2028, in compliance with RBI guidelines.
The proposed merger of REC into PFC is a significant development for REC shareholders as it would result in the company being absorbed into a larger entity, with shareholders receiving shares in PFC based on the exchange ratio. The appointment of a new CCO is a routine compliance function and has minimal direct impact on stock performance.