Acquisitions6 Feb 2026, 04:19 pm
Power Finance Corporation Acquires 52.63% Stake in REC Limited; In-Principle Approval for Merger with REC
AI Summary
In a recent development, Power Finance Corporation Ltd. (PFC) has acquired 52.63% of the government's holding in REC Limited, making REC a subsidiary of PFC. The companies are now operating as a holding and subsidiary, respectively. The Honorable Minister of Finance announced a restructuring proposal for Public Sector NBFCs in the Union Budget 2026-27 speech, which includes merging PFC and REC while ensuring PFC remains a Government Company under the Companies Act, 2013 and other applicable laws. The detailed merger scheme will be shared after necessary approvals.
Key Highlights
- PFC acquires 52.63% of the government's holding in REC Limited
- REC becomes a subsidiary of PFC
- In-principle approval for merger of PFC and REC
- PFC to remain a Government Company post-merger
- Detailed merger scheme to be shared post necessary approvals