Power Finance Corporation (PFC) and REC Ltd have approved a merger scheme and a share exchange arrangement, setting the terms for how shareholders will be combined. Under the approved share swap, REC shareholders receive 88 equity shares of PFC for every 100 equity shares of REC. The boards’ approval paves the way for the merger process outlined in the scheme, including details related to the combined entity’s lending profile and financing plans.
Multiple outlets report that the merger will create a large power financing platform with a loan book exceeding Rs 11 lakh crore, according to the information referenced in coverage. The reported rationale centers on improving operational efficiency and strengthening the balance sheet of the combined company. Coverage also points to the need for shareholders to review the specifics of the share swap ratio and related merger terms, while highlighting that the merger is positioned to support funding needs for energy transition and infrastructure development. The disclosures continue to focus on the agreed exchange ratio and the merger framework rather than on any changes made after the board approval.
