REC, PFC boards approve merger scheme; Check swap ratio and other details

The merger scheme between REC and PFC has been approved by their respective boards, paving the way for the creation of a combined entity. As per the scheme, small retail shareholders of REC will be entitled to receive 88 shares of PFC for every 100 shares they own, with the record date for this swap yet to be fixed. REC had approximately 12 lakh small retail shareholders at the end of the March quarter, according to BSE shareholding data. The merger process is expected to be completed in due course, following which the combined REC-PFC entity will continue to operate as a state-run entity. The government will retain majority voting rights and controlling stake in the entity, ensuring that it remains under state control. This move is likely to have significant implications for the shareholders of both companies, particularly the small retail investors who will be receiving PFC shares as part of the swap. The exact details of the merger scheme, including the record date and other terms, are yet to be announced. The combined entity will continue to operate in the same sector, with the government's majority stake ensuring that it remains aligned with state objectives. The approval of the merger scheme by the boards of REC and PFC marks a significant step forward in the process, and further updates are expected in the coming days. The merger is expected to have a positive impact on the companies involved, with the creation of a stronger and more consolidated entity. The government's continued control over the entity will ensure that it remains focused on serving the public interest.