REC Limited Expands into GIFT City to Strengthen Financial Services Portfolio

REC Limited, a leading public-sector NBFC under the Ministry of Power in India, has secured a significant nod of approval. The Reserve Bank of India (RBI) granted REC a ‘No Objection Certificate’ to establish a wholly-owned subsidiary at the Gujarat International Finance Tec-City (GIFT) in Gandhinagar, Gujarat. This move signifies REC’s strategic expansion into GIFT City, India’s rapidly growing hub for financial services.

Aligning with Growth Strategy

REC’s foray into GIFT City aligns perfectly with its ongoing commitment to portfolio diversification and exploring new avenues for sustainable growth. The new subsidiary, which will operate as a finance company within GIFT, will engage in a broad spectrum of financial activities. This includes lending, investment, and other financial services, enabling REC to leverage the dynamic ecosystem of GIFT City to enhance its service offerings.

GIFT City: A Strategic Launchpad

GIFT City’s emergence as a premier financial and technology hub in India presents REC with several advantages. The subsidiary will benefit from GIFT City’s world-class infrastructure, robust regulatory framework, and access to a diverse pool of financial institutions and investors. This strategic location will empower REC to optimise its financial operations, explore new business models, and potentially forge partnerships to propel its future growth.

Looking Ahead

REC’s expansion into GIFT City underscores its commitment to innovation and strategic growth. By establishing a presence in this flourishing financial hub, REC capitalises on emerging opportunities within the Indian financial services sector. This move not only broadens REC’s service portfolio but also reinforces its position as a key player in India’s evolving financial landscape.

“The GIFT City platform offers a conducive environment for international lending activities, coupled with world-class infrastructure. We are confident that REC will harness these advantages to carve a niche for itself in the global market. The entity at GIFT City will not only present new business opportunities for REC but will also contribute significantly to the growth of the country’s energy sector. We look forward to leveraging this strategic move to further REC’s mission of fostering growth in India’s power and infra sector while expanding our footprint on the global stage,” said Shri Vivek Kumar Dewangan, CMD, REC Limited.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.