PFC and REC boards approve merger scheme; share swap ratio set

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RECLTD · price

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₹364.40

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AI summary

The Boards of PFC and REC, along with their respective shareholders and creditors, have approved the Scheme of Merger for REC to merge into PFC under Sections 230 to 232 of the Companies Act 2013. Share exchange ratio is 88 PFC equity shares for every 100 REC shares. The merged entity will have an aggregate loan book of over INR 11 lakh crore. The scheme is subject to regulatory and government approvals and the merged entity continuing to qualify as a Government Company.

Likely market impact

REC shareholders will receive 88 PFC shares for every 100 REC shares held. Creates a mega power financier with over INR 11 lakh crore loan book, subject to further approvals.