REC Limited Announces Transfer of SPV Assets and Liabilities

A Maharatna company, REC Limited, announced on April 6, 2024, in an exchange filing about the company’s decision to transfer, at par value, all assets and liabilities of a Special Purpose Vehicle (SPV) currently held by its subsidiary, REC Power Development & Consultancy Limited (RECPDCL), to Meerut Shamli Power Transmission Limited.

REC announced that the entire shareholding of Meerut Shamli Power Transmission Limited, which comprises 50,000 equity shares, has been transferred to Megha Engineering & Infrastructures Limited.

Megha Engineering & Infrastructures Limited (MEIL) is a global conglomerate with a network of more than 25 group companies. The company has a considerable line of projects in several sectors, such as irrigation, drinking water, manufacturing, e-mobility, transport, power, and hydrocarbons, valued at ~$30 billion.

In the exchange filing, REC Ltd also added that the transfer of ownership marks the conclusion of a process initiated with REC Ltd’s earlier communication dated March 19, 2024.

On March 19, 2024, the board of directors of REC Ltd approved the sale and transfer of all shares of Meerut Shamli Power Transmission Limited from REC Power Development & Consultancy Limited to Megha Engineering Infrastructure Limited, which was the successful bidder through a tariff-based competitive bidding process.

REC Ltd informed the exchanges that as a result of the transfer, the project-specific Special Purpose Vehicle is no more the subsidiary of REC Power Development & Consultancy Limited and REC with effect from April 6, 2024.

In March 2024, REC Ltd made headlines when its board approved its overall market borrowing programme worth ₹1.6 lakh crore for FY25. The company plans to raise through various bonds, term loans, short-term loans, and commercial papers.

On April 8, 2024, the REC share price opened at ₹472.45, touching the day’s high at ₹474.15, as of 9:37 AM on the NSE.

About REC Ltd

REC Ltd comes under the administrative control of the Ministry of Power, Government of India. It is registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). The company offers financing to power infrastructure projects in India.

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