Shares of Rural Electrification Corporation rose 1.01%, while Power Finance Corporation fell 0.17% at 11:46 IST on BSE after cabinet approved sale of government's stake in Rural Electrification Corporation to Power Finance Corporation.
Rural Electrification Corporation was up 1.01% at Rs 105.
Power Finance Corporation was down 0.17% at Rs 90.10.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has given its 'in principle' approval for strategic sale of the Government of India's existing 52.63% of total paid up equity shareholding in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC) along with transfer of management control. The acquisition intends to achieve integration across the power chain, obtain better synergies, create economies of scale and have enhanced capability to support energy access and energy efficiency by improved capability to finance power sector. It may also allow for cheaper fund raising with increase in bargaining power for the combined entity. Both REC and PFC are Central Public Sector Enterprises under the Ministry of Power. The Cabinet Committee on Economic Affairs (CCEA) made after market hours yesterday, 6 December 2018.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)