Power Finance Corporation Reserves Merger of REC into PFC at Board Meeting

Power Finance Corporation Reserves Merger of REC into PFC at Board Meeting​

Power Finance Corporation Limited (PFC) announced on May 16, 2026, that its Board of Directors reserved the proposal for the merger of REC Limited into PFC. The decision was reached following a Board meeting held that day.

The merger aims to integrate REC into PFC, proceeding under the provisions of the Companies Act, 2013. Following the reservation of this proposal, the Board approved granting authority to the CMD of PFC. This authority allows PFC to apply for and seek approval from the Hon'ble President of India for the proposed merger.

The merger is subject to several conditions. Key terms include the final approval of the Board of Directors, the receipt of necessary consents and approvals, and the determination of the share exchange ratio by valuers appointed for the purpose. Furthermore, the merger must maintain the merged entity's status as a 'Government Company,' which may require capital infusion by the Central Government.

Upon the merger being legally effective, all assets and liabilities of REC will be transferred to PFC. Following this transfer, REC will stand dissolved.

In operational updates, PFC confirmed that the Trading Window for trading in its Equity Shares and Listed Debt Securities, including Tax Free Bonds, will remain closed until further orders. This continuation of the closure was noted in light of the merger proceedings.

The Board meeting convened on May 16, 2026, commenced at 3:00 p.m. and concluded at 3:25 p.m.

PFC Stock Price Movement​

On Friday, Power Finance Corporation Limited shares slipped by 1.14% to settle at ₹445.75. The stock saw a total traded volume of 3.41 million shares during the session.