PFC Board Approves Merger with REC, Share Exchange Ratio Set
PFC's Board approved the merger of REC into PFC. REC shareholders will receive 88 PFC shares for every 100 REC shares held. The merger is subject to regulatory approvals.
The merger of two major financial institutions will have a substantial impact on the companies involved, their shareholders, and the broader financial sector.
The merger of REC into PFC is a significant corporate action that is expected to create synergies and strengthen the combined entity's market position, which is generally viewed positively by the market.
Power Finance Corporation Limited (PFC) announced that its Board of Directors has approved a scheme of merger by absorption of REC Limited into PFC. This decision was made on June 28, 2026, following recommendations from the Audit Committee and the Committee of Independent Directors.
The merger, structured under Sections 230 to 232 of the Companies Act, 2013, and other applicable laws, will see REC absorbed into PFC on a going concern basis. Consequently, REC will be dissolved without being wound up. Eligible shareholders of REC will receive consideration shares in PFC based on a share exchange ratio of 88 equity shares of PFC (₹10 face value each) for every 100 equity shares of REC (₹10 face value each). The merger is subject to necessary regulatory and other approvals.
The announcement continues a previous communication dated June 23, 2026, and complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
What to do with a filing like this
Power Finance Corporation Limited filed this with the NSE as a statutory disclosure, categorised under merger. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Power Finance Corporation Limited. Read the original for the full detail.