PFC slips 5% following Cabinet nod on merger with REC

The government has a total 58.3% stake in REC, the remainder of which is part of Bharat 22 ETF and CPSE ETF. The move will help the Centre meet its disinvestment target of Rs 800 billion for FY19

Shares of Power Finance Corporation (PFC) fell as much as 4.76 per cent to Rs 85.95 per share on the BSE in morning trade on Friday after the Cabinet Committee on Economic Affairs (CCEA) Thursday gave an in-principle approval to the strategic sale of the Centre’s 52.63 per cent holding in REC to PFC, along with transfer of management control.

The government has a total 58.3 per cent stake in REC, the remainder of which is part of Bharat 22 ETF and CPSE ETF. The move will help the Centre meet its disinvestment target of Rs 800 billion for FY19.