REC merger moves closer as Centre weighs preference shares to retain 51% stake
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The proposed merger of Power Finance Corporation and REC Ltd is moving closer to the Union Cabinet.
- ✓Power Secretary Pankaj Agarwal said, “We have sent the proposal to the finance ministry.” The government plans to use preference shares to keep a 51% stake when the merger starts on April 1, 2027.
Story at a Glance
- Category
- BUSINESS
- Reported By
- CNBC TV18
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The proposed merger of Power Finance Corporation (PFC) and REC Ltd is moving closer to the Union Cabinet, with the Finance Ministry reviewing the plan before it is submitted for approval, Power Secretary Pankaj Agarwal told Moneycontrol.
The government is considering issuing preference shares to maintain its minimum 51% stake in the merged company, according to the report. This would replace alternatives discussed earlier, including recapitalisation bonds and a fresh equity infusion.
“One round of inter-ministerial consultation has been done. The comments have been incorporated. We have sent the proposal to the finance ministry. Once we have the approval of the finance minister, it would put up before the cabinet soon,” Agarwal told Moneycontrol.
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