PFC, REC Share Price in Focus; Govt Sets Up Panel to Monitor Proposed Merger

The Union Power Ministry has constituted a high-level committee to monitor the proposed merger of Power Finance Corporation (PFC) and REC Ltd, as per news reports.  

This follows in-principle approval granted by the boards of both companies earlier this month for restructuring through a merger. 

Monitoring and Review Mechanism 

The committee comprises the chairmen of PFC and REC as members. The Joint Secretary (Distribution) in the power ministry will act as the convenor. It will oversee progress and review recommendations submitted on various aspects of the merger. 

In parallel, a working group has been set up to examine the modalities. It includes 1 executive director from each company, with the ministry’s Director (Distribution) serving as convenor. The group is required to meet at least once a week and report to the high-level committee. 

Areas Under Examination 

The working group will assess personnel integration, including harmonisation of pay structures, promotion policies and inter-se seniority. It will also examine corporate and functional restructuring and supervise the integration of technology systems. 

Other areas include aligning stakeholder interests, resolving inter-entity issues and tracking regulatory approvals. Its recommendations will be placed before the high-level committee for consideration. 

Background and Regulatory Aspects 

PFC acquired a 52.63% equity stake in REC in 2019, after which REC became its subsidiary. In the Union Budget earlier this year, Finance Minister Nirmala Sitharaman announced plans to restructure the 2 state-run NBFCs to achieve scale. 

In a joint statement issued last week, the companies said they expect the transition to a merged entity to proceed without material constraints.  

After the merger, a single-entity exposure limit of 20% will apply to the combined entity. This limit caps total credit and investment exposure to a single borrower as a percentage of capital funds. 

Read More: CCI Approved Merger of Hinduja Leyland Finance into NDL Ventures Limited! 

REC and PFC Share Price Performance  

As of February 20, 2026, 11:20 am, REC Limited share price was trading at ₹354.65, up 0.31%, while Power Finance Corporation (PFC) Ltd share price was at ₹408.40, a 0.28% decrease from the previous closing price. 

Conclusion 

The formation of the committee and working group sets out the administrative framework for examining and supervising the proposed consolidation of PFC and REC. 

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