Power Finance Corporation Limited (PFC) has issued a clarification regarding a news article about the potential merger of PFC and Rural Electrification Corporation (REC). PFC stated that while the Cabinet Committee on Economic Affairs (CCEA) had approved PFC's acquisition of a 52.63% stake in REC in December 2018, leading to REC becoming a subsidiary of PFC in March 2019, the current proposal is for restructuring. During the Union Budget 2026 announcement on February 01, 2026, the Finance Minister stated, "The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption. In order to achieve scale and improve efficiency in the Public Sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation." PFC's Board of Directors will convene a meeting to discuss this announcement and determine the future course of action. Any developments will be communicated to the stock exchanges as per SEBI LODR Regulations. PFC confirmed that it is not aware of any other information that has not been announced to the exchanges that could explain any trading movement. The material impact of the budget announcement will be deliberated upon in the upcoming Board meeting, and the outcome will be disclosed.
