NEW DELHI. The Boards of Directors of Power Finance Corporation Limited (PFC) and REC Limited (REC) have approved a Scheme of Merger under the Companies Act, 2013, for the amalgamation of REC into PFC, subject to the approval of shareholders, creditors, regulatory and government authorities, and the condition that the merged entity continues to qualify as a Government Company with the Government of India retaining majority control. The proposed merger will create one of the country’s largest infrastructure financing institutions with a combined loan book exceeding Rs 11 lakh crore. As per the approved valuation report, REC shareholders will receive 88 fully paid equity shares of PFC of Rs 10 each for every 100 fully paid equity shares of REC of Rs 10 each held on the record date, which will be announced by the Boards of the two companies at a later stage.
PFC and REC Boards Approve Merger Scheme to Create Rs 11 Lakh Crore Lending Giant
