Economy and Finance
PFC and REC boards approve merger scheme; share exchange ratio 88:100
PFC's filing to the stock exchanges (outcome of Board meeting held on 28 June 2026) says its Board approved the scheme of merger by absorption of REC Ltd (transferor company) into Power Finance Corporation (transferee company) under Sections 230 to 232 of the Companies Act, 2013. REC would be dissolved without being wound up, and REC's eligible shareholders would receive PFC shares at 88 equity shares of PFC of Rs 10 each for every 100 equity shares of REC of Rs 10 each. The Economic Times reported that the boards of both companies approved the scheme on Sunday, 28 June 2026.
The scheme is a board approval and remains subject to regulatory and other approvals. The combined loan book of over Rs 11 lakh crore is from a PIB release of 30 June 2026 and the ET report, which came after the 28 June filing.
- Merger: REC (transferor) into PFC (transferee)
- Share exchange ratio: 88 PFC shares for every 100 REC shares
- Combined loan book: over Rs 11 lakh crore (per later PIB and ET reports)
- Status: board approval, subject to regulatory approvals
Exam takeaway: A merger of two power-sector financiers creates the largest power financier, a standard exam topic under mergers and PSU finance.
Quick revision: PFC-REC merger scheme approved by boards, 88:100 ratio (ET, 28 June 2026).
PFC stock exchange filing of 28 June 2026 (also reported by The Economic Times) original source