PFC, REC to Merge: Power Sector Giants Unite in a pre-Valentine Wedlock!
PFC currently holds a majority stake of 52.63% in REC, post the acquisition of the GOI’s shareholding in REC in 2019.
New Delhi: In a major pre-Valentine communique , two mighty power sector Maharatnas PFC Limited. and REC Ltd., have decided to merge into one bigger entity to enhance scale and efficiency, as envisages in the Union Budget-2026 proposals and intents. To proceed with the Mahatnas’ merger, the Boards of Directors of REC Limited and Power Finance Corporation Limited (PFC) have accorded in-principle approval according to a REC press note.
Taking cue from the Finance Minister’s budget speech and vision for NBFCs under Viksit Bharat, with clear targets for credit disbursement and technology adoption, as a first step toward achieving scale and improving efficiency in public sector NBFCs, restructuring of PFC and REC has been proposed.
The Boards of PFC and REC noted on Frebruary 6, that the proposed restructuring will involve formulation of a detailed merger scheme in accordance with applicable laws and regulatory requirements. The scheme, once finalized, will be placed before the relevant authorities for necessary approvals.
Both REC and PFC, in their revised filing have ensured that the merged entity will continue to remain classified as a “Government Company” under the provisions of the Companies Act, 2013. Further details of the merger structure, integration roadmap, and implementation timelines will follow adds the press release.
PFC financial results: PFC has since released its 3rd Quarter results for FY’26 , a day earlier. Having delivered a robust performance in 9 months, recording double-digit loan asset growth of 13% Y-o-Y, with renewable energy book growing by 28%.
“Reflecting the company’s consistent focus on value creation, the Board has declared an interim dividend of ₹ 4 per share for the Qr3, elaborated Ms Parminder Chopra CMD, PFC on Thursday.
