PFC board approves in-principle merger with REC, exits PTC India board

Power Finance Corporation Limited (PFC) has initiated a major restructuring following the Union Budget 2026–27, with its Board approving in-principle a merger with its subsidiary, REC Limited. The Board has also approved the withdrawal of PFC’s nominee director from the board of PTC India Limited, along with the surrender of all related promoter rights.

In regulatory filings dated February 6, 2026, PFC informed stock exchanges that its Board of Directors had granted in-principle approval for a merger with REC. The decision follows the Union Budget announcement by the Finance Minister proposing the restructuring of the two state-owned Non-Banking Financial Companies (NBFCs) to enhance scale and operational efficiency. PFC acquired a 52.63 per cent stake in REC in 2019 after purchasing the Government of India’s shareholding and currently functions as REC’s holding company. Both PFC and REC have stated that the merged entity will continue to qualify as a “Government Company” under the Companies Act, 2013. The detailed merger scheme will be finalised and disclosed after receiving all required regulatory and statutory approvals.

On the same day, PFC made a separate disclosure regarding its association with PTC India Limited. Acting on an Office Memorandum issued by the Ministry of Power, the PFC Board approved the withdrawal of its nominee director from PTC India’s board. The decision also involves relinquishing all promoter rights as defined under PTC India’s Articles of Association, subject to applicable regulatory compliance. This step represents a change in PFC’s governance and ownership-related engagement with PTC India.