Power Finance Corporation (PFC) and REC Ltd approve a merger scheme through their boards, with an agreed share exchange ratio of 88 equity shares of PFC for every 100 equity shares of REC. The deal is aimed at consolidating the two power sector lenders into a single entity. The combined institution is expected to become India’s largest power sector financing firm, with a combined loan book exceeding ₹11 lakh crore, according to reporting across outlets.
Multiple sources describe the merger as a restructuring that is expected to strengthen the balance sheet and improve operational efficiency, alongside supporting financing needs tied to India’s energy transition and infrastructure development. While the boards have cleared the merger scheme, the sources also note that further regulatory approvals remain pending before the merger can be completed. Details for shareholders referenced in the reporting include the swap ratio and associated implications for how REC shares will be exchanged for PFC shares, with related process steps such as record-date and shareholder restructuring to follow subject to approvals.
