The Boards of Directors of REC Limited (REC) and Power Finance Corporation Limited (PFC) have provided in principle approval to proceed with a proposed merger of the two public sector non banking financial companies.
The proposed restructuring will involve formulation of a detailed merger scheme in accordance with applicable laws and regulatory requirements, which will be placed before relevant authorities for approvals. PFC currently holds a 52.63 per cent stake in REC following the acquisition of the government of India’s shareholding in REC in 2019.