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REC Limited has completed the transfer of 2 project-specific power transmission subsidiaries through its wholly owned arm, REC Power Development and Consultancy Limited (RECPDCL).
The transactions were finalised on January 9, 2026, following the receipt of consideration from the successful bidders.
With the completion of the transfers, both entities have ceased to be subsidiaries of RECPDCL and REC Limited with effect from the same date.
The bidders were selected through a tariff-based competitive bidding process carried out in line with guidelines issued by the Ministry of Power.
The divestment was executed after this process concluded, and the required Share Purchase Agreements were signed on January 9, 2026.
The entire shareholding held by RECPDCL in each subsidiary was transferred as part of the transaction.
Each subsidiary comprised 50,000 equity shares, all of which were transferred at par value along with associated assets and liabilities.
The structure of the transaction did not involve a slump sale, as confirmed in the regulatory disclosure.
The consideration for the transfers was determined in accordance with applicable government guidelines.
Velgaon Power Transmission Limited has been acquired by Ceigall India Limited for a consideration of ₹1.06 crore. Jejuri Hinjewadi Power Transmission Limited has been acquired by the Tata Power Company Limited for ₹1.57 crore.
The total consideration received across both transactions amounts to ₹2.64 crore. The consideration includes professional fees, applicable taxes, and reimbursement of expenses.
REC Limited stated that both subsidiaries contributed negligible amounts to its turnover, revenue, and net worth in the previous financial year. The company also confirmed that the transactions do not fall under related party transactions.
Neither of the acquirers belongs to REC’s promoter or promoter group, and the transfers are outside any scheme of arrangement.
As of January 12, 2026, 10:28 am, REC Limited share price was trading at ₹368.95, a 1.47% increase from the previous closing price.
Read More: IGL Completes Pre-Qualification Stage for Saudi Arabian Gas Distribution Tender!
Following the completion of the transfers, ownership of both project-specific transmission entities has moved to the respective bidders, bringing REC’s involvement in these subsidiaries to a close.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
REC Limited has completed the transfer of 2 project-specific power transmission subsidiaries through its wholly owned arm, REC Power Development and Consultancy Limited (RECPDCL).
The transactions were finalised on January 9, 2026, following the receipt of consideration from the successful bidders.
With the completion of the transfers, both entities have ceased to be subsidiaries of RECPDCL and REC Limited with effect from the same date.
Competitive Bidding and Regulatory Framework
The bidders were selected through a tariff-based competitive bidding process carried out in line with guidelines issued by the Ministry of Power.
The divestment was executed after this process concluded, and the required Share Purchase Agreements were signed on January 9, 2026.
The entire shareholding held by RECPDCL in each subsidiary was transferred as part of the transaction.
Shareholding and Asset Transfer Details
Each subsidiary comprised 50,000 equity shares, all of which were transferred at par value along with associated assets and liabilities.
The structure of the transaction did not involve a slump sale, as confirmed in the regulatory disclosure.
The consideration for the transfers was determined in accordance with applicable government guidelines.
Acquirers and Transaction Value
Velgaon Power Transmission Limited has been acquired by Ceigall India Limited for a consideration of ₹1.06 crore. Jejuri Hinjewadi Power Transmission Limited has been acquired by the Tata Power Company Limited for ₹1.57 crore.
The total consideration received across both transactions amounts to ₹2.64 crore. The consideration includes professional fees, applicable taxes, and reimbursement of expenses.
Financial and Compliance Disclosures
REC Limited stated that both subsidiaries contributed negligible amounts to its turnover, revenue, and net worth in the previous financial year. The company also confirmed that the transactions do not fall under related party transactions.
Neither of the acquirers belongs to REC’s promoter or promoter group, and the transfers are outside any scheme of arrangement.
REC Share Price Performance
As of January 12, 2026, 10:28 am, REC Limited share price was trading at ₹368.95, a 1.47% increase from the previous closing price.
Read More: IGL Completes Pre-Qualification Stage for Saudi Arabian Gas Distribution Tender!
Following the completion of the transfers, ownership of both project-specific transmission entities has moved to the respective bidders, bringing REC’s involvement in these subsidiaries to a close.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 12, 2026, 11:54 AM IST
Team Angel One
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