The boards of directors at Power Finance Corporation (PFC) and REC Limited have approved a merger scheme that will combine the two state-run non-banking financial companies into a single entity.
The proposed consolidation aims to create India's largest power sector NBFC, with a combined asset base valued at approximately ₹11 lakh crore.
Under the approved share exchange arrangement, REC shareholders will receive 88 fully paid-up equity shares of PFC for every 100 equity shares they currently hold in REC.
The merger is structured to streamline operations and enhance the competitive positioning of the merged entity in the domestic power financing market.
The deal remains subject to further approvals from relevant regulatory authorities, including the Reserve Bank of India, as well as consent from shareholders of both companies.
These steps are standard for large-scale corporate consolidations in India's financial sector.