Power Finance Corporation (PFC) has approved an in-principle merger with REC Ltd, marking a significant consolidation in India’s power financing sector. Additionally, PFC acquired the government’s 52.63% stake in REC, strengthening its position as a leading financial institution supporting India’s energy infrastructure and accelerating growth in renewable and conventional power projects.
Power Finance Corporation Ltd (PFC), one of India’s largest non-banking financial companies in the power sector, has announced two major developments: the board’s approval for an in-principle merger with REC Ltd and the acquisition of the government’s 52.63% holding in REC.
This strategic move is expected to create a stronger, unified entity capable of financing large-scale energy projects, supporting India’s transition toward renewable energy, and enhancing efficiency in infrastructure funding.
Key Highlights:
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Merger Approval: PFC board approves in-principle merger with REC Ltd.
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Stake Acquisition: PFC buys 52.63% government holding in REC.
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Sector Impact: Consolidation to strengthen India’s power financing ecosystem.
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Strategic Focus: Enhanced capacity to fund renewable and conventional energy projects.
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Future Outlook: Greater synergy, efficiency, and competitiveness in energy financing.
The merger and acquisition underscore India’s commitment to building a robust financial backbone for its energy sector, ensuring sustainable growth and improved access to capital for infrastructure projects.
Sources: Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Economic Times, Mint, Business Standard