Power Finance Corp and REC are finalizing a merger plan to help the government maintain its majority stake cost-effectively. Two primary options are being considered: issuing preference shares at ₹10 each, requiring an estimated ₹800 crore outlay, or subscribing to non-tradable bonds worth around ₹24,000 crore. Advisors favor the preference share route, deeming it less expensive than the recurring interest costs of bonds.
Power Finance Corp (PFC) and REC are finalizing a merger plan to assist the government in cost-effectively maintaining its majority stake. Two primary options are under consideration: issuing preference shares at ₹10 each for an estimated ₹800 crore outlay, or subscribing to…
Market Samachar is a news aggregator. This article was originally published by Stocks-Markets-Economic Times. Tap the button above to read the full story on their site.