PFC and REC Boards Approve Merger Scheme with 88:100 Share Swap Ratio
The boards of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have approved a merger scheme, with REC to be absorbed into PFC at a share swap ratio of 88 PFC shares for every 100 REC shares. This consolidation will create India's largest power sector financing institution, combining a loan book exceeding Rs 11 lakh crore. The merger aims to enhance operational efficiency and strengthen the balance sheet to support India's energy transition. It remains subject to approvals from shareholders, regulatory bodies, and courts before becoming effective.