PFC, REC shares fall up to 3% after merger announcement
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Shares of Power Finance Corporation (PFC) fell 1.5% to Rs 413.55, while REC declined 3.5% to Rs 357 during Monday's trading session following PFC’s board approval of an in-principle merger with REC. The merger move aligns with the Union Budget’s proposal to restructure two of India’s largest public sector non-banking financial companies (NBFCs) in the power financing sector. PFC already holds a 52.63% stake in REC, following its acquisition of the government’s holding earlier. In a regulatory filing, PFC said its board noted the government’s proposal to merge the two entities to achieve scale, improve operational efficiency, and enhance credit flow to the power sector. Finance Minister Nirmala Sitharaman, in her Budget speech on February 1, proposed restructuring PFC and REC to strengthen public sector NBFCs. Earlier, the Cabinet Committee on Economic Affairs had cleared the transaction under which PFC acquired the government’s stake ...