Acquisitions6 Feb 2026, 05:11 pm
Power Finance Corporation Acquires Majority Stake in REC Limited; In-Principle Approval for Merger with REC
AI Summary
Power Finance Corporation Ltd. (PFC) has acquired 52.63% of the government's holding in REC Limited, making REC a subsidiary of PFC. The Hon'ble Minister of Finance announced a proposal to restructure Public Sector NBFCs, including PFC and REC, in the Union Budget 2026-27 speech. PFC's Board of Directors has accorded in-principle approval for a merger with REC, ensuring the merged entity remains a Government Company under the Companies Act, 2013. The detailed merger scheme will be shared after requisite approvals.
Key Highlights
- PFC acquires 52.63% of government's holding in REC Limited
- REC becomes a subsidiary of PFC
- Budget announcement proposes restructuring of Public Sector NBFCs
- PFC's Board approves in-principle merger with REC
- Merged entity to remain a Government Company under Companies Act, 2013