PFC, REC boards okay merger, swap ratio of 88 PFC shares for 100 of REC
This story was originally published at 09:01 IST on 29 June 2026
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--REC shareholders will get 88 shares of PFC for every 100 shares held
--PFC board approves merger of REC into PFC
AHMEDABAD – The respective boards of Power Finance Corp. Ltd. and REC Ltd. met Sunday and approved their merger. Shareholders of REC will get 88 fully paid-up shares of Power Finance Corp. of face value INR 10 for every 100 fully paid-up shares of REC of like face value, the companies said in their filings with the stock exchanges.
Upon the merger scheme becoming effective, Power Finance Corp. will issue equity shares in the 88:100 exchange ratio to shareholders of REC, as on the record date defined under the scheme. The equity shares of REC will thereafter be cancelled, leading to dissolution of the company without being wound up.
On Jun. 10, President Droupadi Murmu had approved the proposed merger of REC with Power Finance Corp. The Budget for the financial year 2026-27 (Apr-Mar) had proposed restructuring Power Finance Corp. and REC to achieve scale and efficiency among public-sector non-banking finance companies. At present, Power Finance Corp. holds 52.63% of REC's share capital on a fully diluted basis.
As of Mar. 31, Power Finance Corp.'s standalone loan asset book was INR 5.8 trillion, while REC's was INR 5.84 trillion. For the March quarter, REC had posted a net profit of INR 33.62 billion on total income of INR 144.06 billion while PFC had reported a net profit of INR 63.25 billion on revenues of INR 153.19 billion. Thursday, PFC's shares ended at INR 432.65 on the National Stock Exchange, down over 1% from Wednesday. Shares of REC closed at INR 364.65, up 0.3%. The stock market was shut Friday for Muharram. End
Reported by Sunil Raghu
Edited by Rajeev Pai
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