State-run said on Friday that its has received a No Objection Certificate (NoC) from the (RBI) for its proposed merger with .
On June 28, 2026, the respective Boards of Directors of the Transferor Company (REC) and Transferee Company (PFC) approved the merger of the two power sector lending NBFCs.
“The company has received a No Objection Certificate from the RBI on October 15, 2026, subject to the instructions/ conditions specified therein,” REC said in a filing on BSE.
The scheme shall remain subject to such other statutory and regulatory approvals and fulfilment of such other conditions to the effectiveness of the scheme, including the approval of the respective shareholders and creditors of the companies involved in the scheme, as may be required in accordance with the applicable laws and the provisions of the scheme, it added.
The merger of REC into PFC shall create a financing entity with an aggregate loan book of over ₹11 lakh crore, it added
The Share Exchange Ratio for the proposed merger of REC into PFC shall be 88 equity shares of PFC of ₹10 each fully paid-up for every 100 equity shares of REC of ₹10 each fully paid-up to be issued to the shareholders of REC as existing on a record date to be determined by the boards of PFC and REC (as may be applicable) at a future date, REC had informed on July 29 after the board approvals.
Deloitte Touche Tohmatsu India is the Transaction and Tax Advisor and Cyril Amarchand Mangaldas is the Legal Advisor, to both PFC and REC.
Further, RBSA Valuation Advisors LLP was appointed by PFC and Ernst & Young Merchant Banking Services LLP was appointed by REC for providing joint valuation reports.
SBI Capital Markets was appointed by PFC and Nuvama Wealth Management was appointed by REC, to provide their respective fairness opinions on the joint valuation reports.