PFC and REC Share Price in Focus as Board Approves Merger Scheme

Power Finance Corporation (PFC) and REC Limited have approved a scheme to merge REC into PFC. The proposal was cleared by the boards of both companies on June 28, 2026.  

If completed, the merged company will have a loan book of more than ₹11 lakh crore, making it one of the country's largest government-owned infrastructure financiers.  

PFC and REC Merger Subject to Regulatory Clearance 

The proposal has not yet come into effect. It requires approvals from shareholders and creditors of both companies, along with permissions from regulators and other government authorities.  

The scheme also requires the merged company to continue as a Government Company under the Companies Act. The Government of India must continue to hold majority voting rights and retain control after the merger. 

Advisors Appointed by the Companies 

Deloitte Touche Tohmatsu India LLP has been appointed as the transaction and tax advisor, while Cyril Amarchand Mangaldas is advising on legal matters. RBSA Valuation Advisors LLP prepared the valuation report for PFC, while Ernst & Young Merchant Banking Services LLP prepared the report for REC.  

SBI Capital Markets and Nuvama Wealth Management provided fairness opinions on the valuation reports submitted by the valuers. 

Share Exchange Ratio for the Proposed Merger  

Under the scheme, REC shareholders will receive 88 equity shares of PFC for every 100 equity shares of REC held. Both companies have a face value of ₹10 per share.  

The exchange will be carried out for shareholders whose names appear on the record date, which will be announced later. The ratio is based on a valuation exercise conducted for the transaction. 

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REC & PFC Share Price Performance  

As of June 29, 2026, 1:53 pm, REC Ltd share price was trading at ₹364.55, down 0.03% from the previous closing price, while Power Finance Corporation (PFC) share price was trading at ₹424.75, down 1.83% 

Conclusion 

The merger remains subject to statutory and regulatory approvals before it can be completed. Until then, REC and PFC will continue to function as separate listed public sector companies. 

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