India, June 30 -- The Boards of Directors of Power Finance Corporation Limited (PFC) and REC Limited (REC) have approved the Scheme of Merger under which REC will merge into PFC, subject to the approval of shareholders, creditors, and regulatory authorities.

The proposed merger, to be carried out under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, is expected to create one of India's largest power sector financing entities, with a combined loan book exceeding Rs.11 lakh crore.

As per the approved Scheme and the valuation report, REC shareholders will receive 88 fully paid-up equity shares of PFC (face value Rs.10 each) for every 100 fully paid-up equity shares of REC (face value Rs.10 each). The share e...