REC board approves merger into PFC and Rs 40,000 cr bond plan
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REC Limited's board has approved the merger of REC into Power Finance Corporation (PFC). REC shareholders will receive 88 PFC shares for every 100 REC shares held, and REC will be dissolved without winding up. PFC already holds 52.63% of REC. The scheme is subject to shareholder, stock exchange, and other regulatory approvals. Separately, the board approved raising up to Rs 40,000 crore through private placement of unsecured or secured non-convertible bonds in one or more tranches over one year, subject to shareholder approval at the upcoming AGM.
Creates a mega power-sector financier; REC holders get slightly fewer PFC shares via swap. Bond raise supports lending growth.