PFC–REC Merger Buzz Lifts Stocks, Govt May Retain Control Without 51% Voting Rights Using Preference Shares

Shares of PFC and REC rose about 1 percent after reports of a possible merger and a new government strategy to retain control without 51 percent voting rights. The Centre may use preference shares to maintain majority capital. The move is seen as positive, boosting investor confidence and strengthening the power financing sector.