With the Govt looking at means and ways to bridge its large budget gap ahead of the elections, it has struck upon the idea of one more merger – of PFC and REC.
As per the deal proposed, there is unconfirmed news that under Phase I, REC will acquire a majority stake in PFC, valued at $2.5 billion. This is expected to happen before end of FY19 in March.
Eventually, PFC will be merged into REC unlike the earlier plan of keeping both the operations separate.
The market is obviously not very happy with this news as both, REC as well as PFC are down in the red. REC is down over 6% at Rs.114.60 and PFC slipped almost 7.5% to Rs.94.40. Both currently figure in the top five losers on the BSE.