Power Finance Corporation Ltd in‑principle merger with REC

PFC’s board has approved an in‑principle merger with REC, a move that will create one of Asia’s largest power financiers; Fitch affirmed both PFC and REC at ‘BBB‑/Stable’ on the merger plan. On the funding side, PFC accepted bids worth ₹42.43 billion on September 3 for 5‑year and 10‑year bonds at coupons of 7.60% and 7.61%, respectively. The company’s 40th AGM (held in late August) approved an interim dividend of ₹3.90 per share (ex‑date August 27), and the scrutiniser’s report on voting results was filed with exchanges in early September. PFC also appointed statutory auditors for FY27 and continues to fund large renewable projects, including $355 million financing for ACME Solar’s 250 MW project and support for Rajasthan’s solar + BESS programme. Shares were around ₹347–₹348 on September 16, with a market cap near ₹1.15 lakh crore and a 52‑week high of ₹486.50.