In a significant development for India’s power financing sector, Power Finance Corporation Limited (PFC) has advanced its proposed merger with REC Limited (REC), following a Board meeting held on May 16, 2026.
According to an official communication submitted to stock exchanges, the Board of Directors has reserved the proposal for the merger of REC into PFC and approved initiating the process to seek consent from the Hon’ble President of India. The move aligns with regulatory requirements under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Board has further authorized the Chairman and Managing Director (CMD) of PFC to formally apply for the Presidential approval. The merger will be executed based on a share exchange ratio determined by appointed valuers, while ensuring that the merged entity retains its status as a Government Company. The process may also involve capital infusion or issuance of securities by the Central Government, subject to applicable laws and necessary approvals.
Upon completion of all statutory approvals and legal formalities under Sections 230–232 of the Companies Act, 2013, all assets and liabilities of REC will be transferred to PFC, and REC will be dissolved as part of the merger scheme.
The company also confirmed that, in line with its internal code for fair disclosure and insider trading regulations, the trading window for PFC’s equity shares and listed debt securities will remain closed until further notice.
This development follows earlier disclosures made on March 25, May 5, and May 13, 2026, indicating continued progress toward consolidation within the public sector power financing space.
