PFC-REC Merger
PFC appoints merchant banker for proposed merger with REC, says source
This story was originally published at 20:23 IST on 21 March 2026
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By Pratiksha and Sagar Sen
NEW DELHI – Power Finance Corp. Ltd. has selected merchant banker for the proposed merger with REC Ltd., a senior company official said. "We had floated the tender and we have selected the banker to handle the merger," the official told Informist.
The state-owned financier had issued the tender on Mar. 6. Interested merchant bankers had time till Mar. 13 to submit their bid. The official, however, refrained from naming the selected merchant banker.
In the Union Budget for 2026-27 (Apr-Mar) presented by Finance Minister Nirmala Sitharaman on Feb. 1, the government had proposed restructuring PFC and REC to achieve scale and efficiency in public sector non-banking financial companies. As of Dec. 31, PFC's standalone loan asset book was INR 5.70 trillion while REC's loan asset book was at INR 5.82 trillion.
PFC and REC come under the administrative authority of the Ministry of Power. PFC is a key institution that finances projects related to the power sector and holds 20% market share. The Maharatna company is designated as a nodal agency for revamped distribution sector scheme and ultra mega power projects, and bid process coordinator for independent transmission projects, according to the company's website.
REC, another Maharatna company under the administrative control of the Ministry of Power, finances power sector projects involved in generation, transmission, distribution, renewable energy, and new technologies. The company is the nodal agency for the revamped distribution sector scheme, as per the company's website. Recently, it has also diversified into the non-power infrastructure sector comprising roads and highways, metro rail, airports, ports, information technology communication. In 2019, PFC had acquired a 52.6% stake in REC and the convergence was to facilitate better financial aid to the power sector in India.
Shares of PFC Friday ended 0.2% higher at INR 412.85 on the National Stock Exchange and those of REC ended 0.9% higher at INR 330.50. For the December quarter, PFC had reported net profit of INR 47.63 billion on revenue of INR 146.56 billion. REC reported net profit of INR 40.43 billion for the December quarter and the total income came in at INR 149.11 billion. End
Edited by Akul Nishant Akhoury
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