PFC-REC merger: Shares of REC Ltd and Power Finance Corporation (PFC) will be in focus on Thursday, June 11, as the former received Presidential approval for its proposed merger into PFC.
In a regulatory filing dated Wednesday, REC stated that the Ministry of Power, vide its letter dated June 10, 2026, has “conveyed the approval of the Competent Authority in respect of the aforesaid proposal”.
“In compliance with the provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation of REC’s earlier intimation dated May 16, 2026, whereby the Company had intimated the decision of the Board of Directors to reserve the proposal for merger of REC into PFC, for approval of the Hon’ble President of India,” the filing read.
Earlier, on February 9, PFC’s board had given its in-principle approval for the merger of the non-banking finance company REC with itself, following the announcement made regarding the same by the Finance Minister at the 2026-27 Budget.
Post-merger, PFC will continue to remain a ‘government company’.
The merger was initially announced during the 2026-27 Budget, where the Finance Minister Nirmala Sitharaman had said: “The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption. In order to achieve scale and improve efficiency in the Public Sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation.”
Previously, pursuant to ‘In Principle’ approval of the Cabinet Committee on Economic Affairs (CCEA), PFC had acquired 52.63% of the government’s holding in REC Ltd for ₹14,500 crore in March 2019.
Accordingly, REC has been operating as a subsidiary company of state-owned PFC.
Stock performance
Shares of REC closed 0.94% lower at ₹348.80 per unit on the National Stock Exchange (NSE) on Wednesday. Furthermore, the stock of PFC ended at ₹431.30 per equity share, marking a 0.99% decline.
However, the presidential approval for the proposed merger was announced after the market closed.