NEW DELHI: Shares of Power Finance Company (PFC) plunged nearly 5 per cent, while those of REC climbed 1 per cent, in morning trade on Friday after the Union Cabinet approved the sale of governments shareholding in REC to PFC.
The Cabinet Committee on Economic Affairs has given in principle approval for strategic sale of the government of Indias existing 52.63 per cent of total paid-up equity shareholding in REC to Power Finance Corporation along with transfer of management control, finance minister Arun Jaitley said in a briefing after the cabinet meeting.ET had on Tuesday reported that in a surprising reversal, the government proposed that Power Finance Corp acquire REC Ltd against the previous plan of REC taking over PFC.
PFCs loan assets in the second quarter of this financial year stood at Rs 2,84,848 crore against that of REC at Rs 2,41,913 crore.
PFC has a net worth of Rs 37,571 crore against Rs 32,478 crore of REC.
The current market capitalisation of PFC is Rs 27,364 crore, higher than RECs Rs 24,450 crore.
Shares of PFC traded 2.71 per cent down at Rs 87.80, while those of REC were 0.29 per cent up at Rs 104.25 around 9:50 am on BSE.