Categories: Business

REC Share Price In Focus: PFC-REC Mega Merger Could Trigger Market Re-Rating – Here’s What Investors Should Know

The PFC-REC merger has investors buzzing, with REC share price in focus. Reduced government stake, operational scale, and overlapping assets promise growth, efficiency, and market re-rating, creating opportunities for shareholders.

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Published by Aishwarya Samant
Last updated: February 9, 2026 13:30:13 IST

REC Share Price in Focus as PFC-REC Merger Gains Board Approval

The buzz is on! Shares of Power Finance Corporation (PFC) and REC Ltd are attracting attention as PFC announced its decision to merge REC following the Budget presentation. The merger has significant implications for India, and investors are closely monitoring the situation. PFC will retain its status as a government-owned company, providing operational stability while pursuing increased scale and improved efficiency. The market is waiting to see whether the merger will unlock new growth opportunities or simply restructure India’s financial powerhouse landscape.

REC Share Price In Focus as UBS Breaks Down PFC-REC Merger Impact

The PFC-REC merger is shaping up to be a significant move between two powerful entities. The merger will result in REC becoming part of PFC, providing shareholders with 8 PFC shares for every 9 REC shares they own, forming a financial organization with an ₹11.5 trillion loan book, comparable to India’s largest banks.

The combined entity is expected to achieve stronger financial performance due to overlapping customer bases and a balanced distribution of power generation assets, including 29% conventional power plants, 40% electricity distribution and transmission, and 14% renewable energy sources. According to UBS analysts, the merger will trigger a market re-evaluation, accelerate business expansion, and deliver investors a valuable combination of operational scale, efficiency, and sustainable growth opportunities.

Government Stake Shrinks Post-Merger, This Has Pushed REC Share Price In Spotlight

The PFC-REC merger leads to more than just changes in financial statements, as it will reduce government ownership of PFC to 42%, which has excited investors. Analysts remain positive but are waiting for full details of the process before making predictions about future growth and market positioning.

The newly established financial institution offers REC shareholders more than just numerical value, giving them a chance to participate in the rising success of the organization. The REC share price should be closely monitored, as it will reflect both the merger’s expected outcomes and the company’s future growth trajectory.

(With Inputs)

Also Read: SBI Share Price Hits 52-Week High, Surges 7% On Strong Q3 Earnings; Net Profit And Loan Growth Boost Investor Optimism

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