New Delhi, May 16, 2026: The Board of Directors of Power Finance Corporation Ltd. (PFC), at its meeting held on May 16, 2026, has reserved the proposal for the merger of REC Limited (REC) into PFC and authorised the Chairman and Managing Director to seek approval from the Hon’ble President of India.
The decision has been taken in accordance with the provisions of the Articles of Association of the Company and the applicable provisions of the Companies Act, 2013, read with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Decisions of the Board
The Board, inter alia, approved:
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Reserving the proposal for merger of REC into PFC for approval of the Hon’ble President of India.
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Authorisation to the CMD of PFC to submit an application and seek the necessary approval for the proposed merger.
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Determination of the share exchange ratio by independent valuers appointed for the purpose.
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Ensuring that the merged entity continues to retain its status as a Government Company, including through issuance of securities or capital infusion by the Central Government, if required.
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Completion of the merger subject to final Board approvals and receipt of statutory and regulatory clearances.
Transfer of Assets and Liabilities
Upon the merger becoming effective under applicable law:
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All assets and liabilities of REC will be transferred to PFC.
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REC will stand dissolved in accordance with Sections 230–232 of the Companies Act, 2013.
Trading Window Closure
In continuation of earlier communications, the company has informed that the trading window for dealing in the equity shares and listed debt securities of PFC will remain closed until further orders. Designated persons and their immediate relatives have been advised not to trade in the company’s securities during this period.
The Board meeting commenced at 3:00 PM and concluded at 3:25 PM.
About the Companies
Power Finance Corporation Ltd. (PFC) is a Maharatna Central Public Sector Enterprise under the Ministry of Power and a leading non-banking financial company focused on funding power and infrastructure projects across India.
REC Limited is a Government of India enterprise engaged in financing power sector projects, including generation, transmission and distribution, and has been a subsidiary of PFC since 2019.
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