M&A

M&A

PFC acquires 53% stake of the govt in REC; boards approve merger

BSE Announcement   Business Line   REC  

State-owned, publicly listed infrastructure finance company Power Finance Corporation (PFC) has acquired a 52.63% government holding in 'Maharatna' non-banking financial company (NBFC) REC (formerly Rural Electrification Corporation), making REC its subsidiary.Founded in 1969, REC finances and promotes power sector, including generation, transmission and distribution.This acquisition aims to scale operations, enhance efficiency, and implement technology adoption within public sector NBFCs. The boards of both PFC and REC have given in-principle approval for a merger.

For FY25, Rural Electrification Corporation had reported about INR 56,367 Cr in Operating Income and about INR 15,884 Cr in PAT.