The Exchange has sought clarification from REC Limited with respect to recent news item captioned Govt considering merger of state-run entities PFC and REC. The response from the Company is attached.
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Awaiting price reaction for this filing.
NSE has asked REC Limited to clarify a news report that the government is considering a merger of state-run power financiers PFC (Power Finance Corporation) and REC Limited. The company has submitted its response to the exchange, the contents of which would determine whether the merger is in advanced stages or still preliminary. As both are listed public sector NBFCs, a merger would create one of India's largest power sector lenders. Key details such as the swap ratio, structure, and timeline remain undisclosed in this filing. Shareholders are awaiting the company's official response to understand the potential terms and impact.
If the merger moves forward, it could significantly reshape REC's valuation depending on the swap ratio and whether it is the acquirer or the acquired entity. Short-term stock movement is likely to be volatile as traders react to speculation, while long-term impact depends on synergies and deal structure. Investors should watch for REC's official clarification and any further government or board announcements.