PFC skids 3% as cabinet approves merger proposal

The government is expected to complete the deal by the end of the current financial year.

Dec 07, 2018 05:12 IST India Infoline News Service

Merger
Shares of Power Finance Corporation (PFC) slipped 3% in the morning session on Friday after the Cabinet approved the sale of government’s entire 52.63% in Rural Electrification Corporation (REC) to PFC.

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has granted an in-principle approval for strategic sale of the government’s existing 52.63% of total paid-up equity shareholding in REC to Power Finance Corporation (PFC) along with transfer of management control.

The government is expected to complete the merger deal by the end of the current financial year. Further, the modalities of the deal will be worked out by a committee comprising finance minister Arun Jaitley, secretaries of the departments involved, and Infrastructure Minister Nitin Gadkari.

Power Finance Corporation share price is currently at Rs87.80, down by Rs2.45 or 2.71% from its previous closing of Rs90.25 on the BSE.

The scrip opened at Rs87 and has touched a high and low of Rs88.85 and Rs85.95, respectively. So far, 1,70,30,302 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs23,826.73cr.

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