PFC, REC Boards Approve Merger to Create Rs 11 Lakh Crore Power Financing Giant
The proposed merger, approved under Sections 230 to 232 of the Companies Act, 2013, is subject to approvals from shareholders, creditors, regulatory and government authorities. It also requires the merged entity to continue qualifying as a Government Company, with the Government of India retaining majority ownership and control.
Under the approved share exchange ratio, REC shareholders will receive 88 equity shares of PFC with a face value of Rs. 10 each for every 100 equity shares of REC held. The record date for the share swap will be determined by the boards of the two companies at a later stage.
The merger is expected to create a stronger financial institution with enhanced lending capacity to support India's power, renewable energy and infrastructure sectors while improving operational efficiencies and capital allocation.
Published on:
01 July 2026
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