{"id":115193,"date":"2026-06-11T17:20:02","date_gmt":"2026-06-11T11:50:02","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=115193"},"modified":"2026-06-11T17:20:04","modified_gmt":"2026-06-11T11:50:04","slug":"pfc-share-price-rec-merger-presidential-approval","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/","title":{"rendered":"PFC Share Price Falls Up to 4% and REC Slips as Government Gets Presidential Approval for Long-Awaited REC-into-PFC Merger Plan"},"content":{"rendered":"<div class=\"meta-block\"><\/div>\n<p style=\"border-left: 4px solid #1F4E79; background: #EBF3FB; padding: 10px 16px; font-style: italic;\"><em>PFC share price: Prev close Rs 431.30 (June 10). Intraday low ~Rs 414 (-4%). REC: Prev close ~Rs 348.80. Intraday low Rs 339.55 (-2.65%) at 9:25 AM. Trigger: Ministry of Power conveyed President of India&#8217;s approval for REC-into-PFC merger via letter June 10, 2026. Share exchange ratio pending. Merger under Sections 230-232 of Companies Act 2013. REC to be dissolved; PFC to be surviving entity. Remains a Government Company post-merger.<\/em><\/p>\n<p>The <strong><a href=\"https:\/\/univest.in\/user\/stocks\/pfc\/power-finance-corporation-ltd-share-price-today\">PFC<\/a> share price<\/strong> fell up to 4% to an intraday low of approximately Rs 414 on Thursday, June 11, 2026, while REC Ltd slipped to an intraday low of Rs 339.55 (down 2.65%) after both state-owned power sector NBFCs disclosed that the President of India has approved the proposed merger of REC into Power Finance Corporation. The approval came via a Ministry of Power letter dated June 10, 2026, confirming that &#8220;the Competent Authority (President of India)&#8221; had cleared the merger proposal. The announcement moved a plan nearly seven years in the making a decisive step forward: PFC had acquired a 52.63% government stake in REC for Rs 14,500 crore in March 2019, and the formal merger was announced as a policy priority in the Union Budget 2026-27. The <strong>PFC share price<\/strong> sell-off reflects near-term investor uncertainty about the share exchange ratio and the implications for both sets of shareholders.<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&amp;utm_medium=pfc-share-price-rec-merger\"><strong>Click Here &#8211; Get Free Research From Univest<\/strong><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#PFC_Share_Price_and_REC_Todays_Market_Data\" title=\"PFC Share Price and REC: Today&#8217;s Market Data\">PFC Share Price and REC: Today&#8217;s Market Data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#PFC-REC_Merger_All_Key_Details\" title=\"PFC-REC Merger: All Key Details\">PFC-REC Merger: All Key Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#Why_the_Merger_Is_Creating_Selling_Pressure\" title=\"Why the Merger Is Creating Selling Pressure\">Why the Merger Is Creating Selling Pressure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#Combined_Entity_What_Changes_Post-Merger\" title=\"Combined Entity: What Changes Post-Merger\">Combined Entity: What Changes Post-Merger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#Why_are_PFC_and_REC_share_prices_falling_on_merger_approval\" title=\"Why are PFC and REC share prices falling on merger approval?\">Why are PFC and REC share prices falling on merger approval?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#What_does_the_REC-PFC_merger_mean_for_shareholders\" title=\"What does the REC-PFC merger mean for shareholders?\">What does the REC-PFC merger mean for shareholders?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#What_is_the_timeline_for_the_REC-PFC_merger_to_complete\" title=\"What is the timeline for the REC-PFC merger to complete?\">What is the timeline for the REC-PFC merger to complete?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/pfc-share-price-rec-merger-presidential-approval\/#What_is_the_strategic_rationale_for_merging_REC_into_PFC\" title=\"What is the strategic rationale for merging REC into PFC?\">What is the strategic rationale for merging REC into PFC?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"PFC_Share_Price_and_REC_Todays_Market_Data\"><\/span><strong>PFC Share Price and REC: Today&#8217;s Market Data<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"width: 100%; border-collapse: collapse; font-size: 14px;\">\n<thead>\n<tr>\n<th style=\"border: 1px solid #000; padding: 7px 9px; background: #000; color: #fff; text-align: left;\">Parameter<\/th>\n<th style=\"border: 1px solid #000; padding: 7px 9px; background: #000; color: #fff; text-align: left;\">PFC<\/th>\n<th style=\"border: 1px solid #000; padding: 7px 9px; background: #000; color: #fff; text-align: left;\">REC<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">NSE Symbol<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">PFC<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">RECLTD<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Sector<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Power Sector NBFC<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Power Sector NBFC<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Prev Close (June 10)<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 431.30<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">~Rs 348.80<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Intraday Low<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">~Rs 414.05 (-4%)<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 339.55 (-2.65%)<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Early Trade (9:25 AM)<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Under pressure<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 343.90 (-1.40%)<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Market Cap<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 1,42,333 crore (June 10)<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">~Rs 90,000+ crore<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">52-Week High<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 486.50<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">~Rs 434<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">52-Week Low<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 329.90<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">~Rs 223<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">FY26 Full Year PAT<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 25,900 crore (+12.7% YoY)<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 17,648 crore (est.)<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">FY26 Loan Book<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Rs 11,64,000 crore<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">~Rs 6,00,000 crore<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Role in merger<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Surviving entity (absorbs REC)<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Being dissolved into PFC<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">PFC stake in REC<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">52.63% (acquired Mar 2019 for Rs 14,500 Cr)<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">N\/A<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div style=\"background: #E8EAFF; border-radius: 14px; padding: 22px 26px 18px; margin: 24px 0; cursor: pointer;\">\n<p style=\"font-size: 18px; font-weight: bold; color: #0a0a23; margin: 0 0 8px;\">Track PFC Share Price and Power Sector Stocks on Univest<\/p>\n<p style=\"font-size: 14px; color: #3a3a5c; margin: 0 0 10px;\">Univest covers PFC, REC, and all power sector stocks with live prices and research.<\/p>\n<ul style=\"margin: 0 0 12px 18px; color: #3a3a5c; font-size: 14px; line-height: 1.8;\">\n<li>Live PFC share price and REC with merger timeline tracking<\/li>\n<li>Power sector NBFC analysis: loan books, earnings, and policy updates<\/li>\n<li>Daily energy finance sector picks from Univest research<\/li>\n<\/ul>\n<p><a style=\"display: inline-block; background: #3B7FFF; color: #fff; font-size: 14px; font-weight: 600; padding: 10px 22px; border-radius: 50px; text-decoration: none;\" href=\"https:\/\/univest.in\/user\/payment?planType=ALL_PRO%20PLANS\" target=\"_blank\" rel=\"noopener\">See the Stocks \u2192<\/a><\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"PFC-REC_Merger_All_Key_Details\"><\/span><strong>PFC-REC Merger: All Key Details<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"width: 100%; border-collapse: collapse; font-size: 14px;\">\n<thead>\n<tr>\n<th style=\"border: 1px solid #000; padding: 7px 9px; background: #000; color: #fff; text-align: left;\">Merger Parameter<\/th>\n<th style=\"border: 1px solid #000; padding: 7px 9px; background: #000; color: #fff; text-align: left;\">Detail<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Trigger<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Ministry of Power letter dated June 10, 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Approval authority<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">President of India (Competent Authority)<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Budget announcement<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Union Budget 2026-27: FM Nirmala Sitharaman<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">PFC in-principle board approval<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">February 6, 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">REC board decision<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">May 16, 2026 , reserved for Presidential approval<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Structure<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">REC merged INTO PFC; REC to be dissolved<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Legal basis<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Sections 230-232 of Companies Act, 2013<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Share exchange ratio<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Pending , to be determined by independent valuers<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Combined entity status<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Will remain a Government Company post-merger<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Timeline<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Final board approvals + statutory\/regulatory clearances pending<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">PFC stake in REC<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">52.63% (acquired Mar 2019 for Rs 14,500 crore)<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Government&#8217;s objective<\/td>\n<td style=\"border: 1px solid #000; padding: 7px 9px; background: #fff; color: #000;\">Scale and efficiency in Public Sector NBFCs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_Merger_Is_Creating_Selling_Pressure\"><\/span><strong>Why the Merger Is Creating Selling Pressure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>PFC share price<\/strong> and REC typically rally on news of merger clearances in conventional corporate deals, but PSU merger dynamics work differently. The key investor concern is the share exchange ratio: until independent valuers set the ratio at which REC shareholders receive PFC shares, significant uncertainty persists. If REC is undervalued in the swap ratio, its shareholders will prefer to sell in the open market rather than wait. REC has been trading at a lower price-to-book and price-to-earnings multiple than PFC, partly because REC is a subsidiary. The merger eliminating REC as an independently listed entity also removes a separate investment option for market participants who preferred REC-specific exposure. For PFC itself, while a larger balance sheet improves fundraising economics, the <strong>PFC share price<\/strong> is absorbing the uncertainty of an integration that still has multiple regulatory and NCLT approval steps ahead.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Combined_Entity_What_Changes_Post-Merger\"><\/span><strong>Combined Entity: What Changes Post-Merger<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once the merger becomes effective under Sections 230-232 of the Companies Act, REC&#8217;s entire loan book (estimated at ~Rs 6 lakh crore) will transfer to PFC, creating a combined power sector NBFC with a loan book potentially exceeding Rs 17 lakh crore. This makes the combined entity India&#8217;s largest infrastructure lender by a significant margin. The merged PFC will retain its status as a Government Company. The <strong>PFC share price<\/strong> trajectory post-merger will depend on how efficiently the combined entity deploys capital and whether the scale advantage translates into meaningfully lower borrowing costs and higher margins.<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/screeners\"><strong>Track PFC Share Price and Power Sector NBFCs on the Univest Screener<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>PFC share price<\/strong> falling up to 4% and REC declining 2.65% intraday after Presidential merger approval reflects classic event-driven uncertainty: the approval is confirmed but the critical share exchange ratio remains pending. The merger creates India&#8217;s largest infrastructure lender but the near-term catalyst for price recovery will be the exchange ratio announcement. Track live <strong>PFC share price<\/strong> and REC merger updates on Univest.<\/p>\n<p style=\"margin-top: 24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track PFC share price live with REC merger updates and power sector research on Univest.<\/em><\/p>\n<div style=\"background: #CC0000; border-radius: 8px; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"color: #ffffff; font-size: 13px; line-height: 1.7; margin: 0;\"><strong style=\"color: #ffffff;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Why_are_PFC_and_REC_share_prices_falling_on_merger_approval\"><\/span><strong>Why are PFC and REC share prices falling on merger approval?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans. PFC share price and REC are both declining after the Presidential approval for the merger because the approval introduces near-term uncertainty about the share exchange ratio. The exchange ratio, which determines how many PFC shares REC shareholders will receive, has not yet been announced and will be set by independent valuers. REC shareholders are concerned the ratio may undervalue their holdings, while PFC shareholders worry about potential dilution. The merger also eliminates REC as an independent listed entity, removing the flexibility of investing in REC directly. Historically, PSU merger announcements tend to create short-term selling pressure in both stocks until the exchange ratio provides clarity.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_does_the_REC-PFC_merger_mean_for_shareholders\"><\/span><strong>What does the REC-PFC merger mean for shareholders?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans. For REC shareholders, the merger means they will receive PFC shares in exchange for their REC shares, based on an exchange ratio to be determined by independent valuers. The exact ratio is pending and will be a key determinant of value. If the exchange ratio is set at or above the current market price relationship between REC and PFC, REC shareholders benefit; if it undervalues REC, they lose. For PFC shareholders, the merger creates a larger combined balance sheet (estimated loan book of Rs 17,64,000 crore) and eliminates a subsidiary that was separately listed. PFC will remain the surviving entity. REC will cease to exist as a listed company once the merger is effective.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_timeline_for_the_REC-PFC_merger_to_complete\"><\/span><strong>What is the timeline for the REC-PFC merger to complete?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans. The Presidential approval via the Ministry of Power letter dated June 10, 2026, is a significant milestone, but the merger is not yet complete. Several steps remain: the detailed merger scheme needs to be prepared and filed with the National Company Law Tribunal (NCLT), independent valuers need to determine the share exchange ratio, both PFC and REC boards need to formally approve the final scheme, shareholders of both companies need to approve the scheme through a court-convened meeting, and SEBI and RBI approvals are required for the listed PSU NBFC structure. PFC had earlier indicated the merger could be completed by April 2027, subject to receipt of all required approvals.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_strategic_rationale_for_merging_REC_into_PFC\"><\/span><strong>What is the strategic rationale for merging REC into PFC?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans. The PFC share price and REC are being merged to create a single, larger power sector NBFC with a combined loan book that could exceed Rs 17 lakh crore. Finance Minister Nirmala Sitharaman announced the merger in the Union Budget 2026-27, stating the goal is to achieve scale and improve efficiency in Public Sector NBFCs for credit deployment in the power sector. The combined entity will have enhanced borrowing capacity, allowing it to raise funds at lower costs in both domestic and international markets. PFC and REC already share a closely linked ownership structure since March 2019, when PFC acquired 52.63% of REC for Rs 14,500 crore. The merger formalises this integration.<\/strong><\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Why are PFC and REC share prices falling on merger approval?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"PFC share price and REC are both declining after the Presidential approval for the merger because the approval introduces near-term uncertainty about the share exchange ratio. The exchange ratio, which determines how many PFC shares REC shareholders will receive, has not yet been announced and will be set by independent valuers. REC shareholders are concerned the ratio may undervalue their holdings, while PFC shareholders worry about potential dilution. The merger also eliminates REC as an independent listed entity, removing the flexibility of investing in REC directly. Historically, PSU merger announcements tend to create short-term selling pressure in both stocks until the exchange ratio provides clarity.\"}},{\"@type\":\"Question\",\"name\":\"What does the REC-PFC merger mean for shareholders?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"For REC shareholders, the merger means they will receive PFC shares in exchange for their REC shares, based on an exchange ratio to be determined by independent valuers. The exact ratio is pending and will be a key determinant of value. If the exchange ratio is set at or above the current market price relationship between REC and PFC, REC shareholders benefit; if it undervalues REC, they lose. For PFC shareholders, the merger creates a larger combined balance sheet (estimated loan book of Rs 17,64,000 crore) and eliminates a subsidiary that was separately listed. PFC will remain the surviving entity. REC will cease to exist as a listed company once the merger is effective.\"}},{\"@type\":\"Question\",\"name\":\"What is the timeline for the REC-PFC merger to complete?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The Presidential approval via the Ministry of Power letter dated June 10, 2026, is a significant milestone, but the merger is not yet complete. Several steps remain: the detailed merger scheme needs to be prepared and filed with the National Company Law Tribunal (NCLT), independent valuers need to determine the share exchange ratio, both PFC and REC boards need to formally approve the final scheme, shareholders of both companies need to approve the scheme through a court-convened meeting, and SEBI and RBI approvals are required for the listed PSU NBFC structure. 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The merger formalises this integration.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>PFC share price falls 4% (intraday low ~Rs 414) and REC down 2.65% (Rs 339.55) after Presidential approval for REC-into-PFC merger. Exchange ratio pending. Analysis.<\/p>\n","protected":false},"author":34,"featured_media":115225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[3914],"class_list":["post-115193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-share-price-falls"],"metadata":{"rank_math_internal_links_processed":["1"],"_edit_lock":["1781178610:23"],"_last_editor_used_jetpack":["block-editor"],"rank_math_primary_category":["842"],"rank_math_seo_score":["77"],"rank_math_title":["PFC Share Price Falls 4% on Presidential REC Merger Nod"],"rank_math_description":["PFC share price falls up to 4% to intraday low ~Rs 414 (prev close Rs 431.30). REC falls 2.65% to Rs 339.55 intraday. 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