Mumbai, June 29 -- The boards approved a share exchange ratio of 88 equity shares of PFC for every 100 equity shares of REC held by shareholders. Following the merger, REC shareholders will receive 88 PFC shares for every 100 REC shares they own, while their REC shares will be cancelled.

The proposed merger will create India's largest power sector financing institution with a combined loan book of more than Rs 11 lakh crore. PFC currently holds a 52.63% stake in REC, while the Government of India owns a 55.99% stake in PFC.

The merger remains subject to approvals from shareholders, stock exchanges, the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT) and other statutory authorities. The record date...