REC

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** Shares of Power Finance Corporation PWFC.NS fall 1.8% to 424.85 rupees

** Boards of PWFC and REC RECM.NS approved merger of REC into PWFC

** PWFC to issue 88 shares for every 100 shares held in RECM

** Co said merger shall create a financing entity with an aggregate loan book of over 11 trln rupees ($116.56 bln)

** YTD, PWFC up about 20% and RECM up around 2%

($1 = 94.3725 Indian rupees)

(Reporting by Vijay Malkar in Bengaluru)

(([email protected]; +91 8097833031;))

REC Ltd’s board approved the scheme of merger by absorption into Power Finance Corporation Ltd, setting a share exchange ratio of 88 PFC shares for every 100 REC shares, the company said on Monday. The all-stock deal, which values REC at a discount to PFC, would dissolve the state-run lender without winding up. PFC, which already holds a 52.63% stake in REC, will issue new equity to the remaining shareholders as on a record date to be fixed later. The board also authorized raising up to ₹1,40,000 crore through private placement of non-convertible bonds, subject to shareholder nod at the annual general meeting. The scheme, designed to create a dominant power-sector financier with a combined balance sheet, will next be filed with stock exchanges to obtain a no-objection letter before approaching the National Company Law Tribunal.

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MUMBAI, June 25 (Reuters) - India's REC RECM.NS accepted a total of 54.95 billion rupees ($581.77 million) in bids for the reissue of 7.46% June 2028 bonds and a sale of five-year bonds, three bankers said on Thursday.

It will offer a yield of 7.10% for the 2028 reissue and pay a coupon of 7.17% for the five-year note and had invited commitment bids for the issue earlier in the day, they said.

REC did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on June 25:

*Size includes base plus greenshoe for some issues

($1 = 94.4525 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

(([email protected], [email protected]))

MUMBAI, June 23 (Reuters) - India's REC RECM.NS plans to raise up to 60 billion rupees ($633.46 million), including a greenshoe option of 50 billion rupees, through the sale of bonds maturing in five years and one day, and through the reissue of 7.46% June 2028 bonds, three bankers said on Tuesday.

It has invited coupon and commitment bids for the issue on Thursday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 23:

*Size includes base plus greenshoe for some issues

($1 = 94.7175 Indian rupees)

(Reporting by Khushi Malhotra; Editing by Janane Venkatraman)

(([email protected]))

MUMBAI, June 16 (Reuters) - India's REC RECM.NS has accepted bids worth 40 billion rupees ($422.5 million) for bonds maturing in 10 years, three bankers said on Tuesday.

It will pay an annual coupon of 7.46%, and had invited coupon and commitment bids for the issue earlier in the day, they said.

REC confirmed the debt issue over an email.

Here is the list of deals reported so far on June 16:

*Size includes base plus greenshoe for some issues

($1 = 94.6650 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Varun H K)

(([email protected]))

MUMBAI, June 15 (Reuters) - India's REC RECM.NS plans to raise up to 40 billion rupees ($422.10 million), including a greenshoe option of 32 billion rupees, through a sale of bonds maturing in 10 years, three bankers said on Monday.

It has invited coupon and commitment bids for the issue on Tuesday, they said.

REC did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 15:

*Size includes base plus greenshoe for some issues

($1 = 94.7650 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrishnan Nair)

(([email protected], [email protected]))

REC Ltd has secured presidential approval for its proposed merger into Power Finance Corporation Ltd, the company disclosed on Wednesday. The Ministry of Power conveyed the competent authority's approval, clearing a key regulatory hurdle for the consolidation. REC's board had reserved the proposal for the president's nod on May 16, 2026. The merger will combine two of India's largest state-run power sector lenders, creating an NBFC with combined assets of over ₹10 lakh crore. The share exchange ratio will be determined by valuers, and further approvals from shareholders and other regulators are still required.

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June 10 (Reuters) - Power Finance Corporation Ltd PWFC.NS:

• POWER FINANCE - PRESIDENTIAL APPROVAL FOR PROPOSED MERGER OF REC LIMITED INTO PFC

Source text: ID:nBSE2cGnWz

Further company coverage: PWFC.NS

(([email protected];))

MUMBAI, June 8 (Reuters) - India's REC RECM.NS accepted bids worth 30 billion rupees ($313.46 million) in a sale of bonds maturing in two years and nearly nine months, three bankers said on Monday.

The state-run company will pay a coupon of 7.38% and had invited commitment bids for the issue earlier in the day, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far June 8:

*Size includes base plus greenshoe for some issues

($1 = 95.7075 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee)

(([email protected], [email protected]))

MUMBAI, June 4 (Reuters) - India's REC RECM.NS plans to raise 30 billion Indian rupees ($313.48 million), including a greenshoe option of 25 billion rupees through the sale of bonds maturing in two years and nearly nine months, three bankers said on Thursday.

The state-run company has invited coupon and commitment bids for the issue on Monday, they said.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on June 4:

*Size includes base plus greenshoe for some issues

($1 = 95.7000 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Ronojoy Mazumdar)

(([email protected]))

By Dharamraj Dhutia

MUMBAI, May 29 (Reuters) - Two Indian state-run financial institutions are set to tap the floating-rate bond market, seeking to raise as much as 80 billion rupees ($842 million) via debt sales before the central bank's policy decision, three sources aware of the matter said on Friday.

REC may raise 30 billion to 50 billion rupees, while Small Industries Development Bank of India (SIDBI) may raise 30 billion rupees through bonds maturing in about three years.

Both companies have generally relied on fixed-rate bonds. REC has yet to issue bonds this financial year, while SIDBI has raised around 30 billion rupees through bonds maturing in three years and three months at 7.61% coupon.

"The companies have already started the talks and negotiations for the spread that they could offer over the underlying benchmark, which in this case is the three-month treasury bills," one of the sources said.

"SIDBI is eyeing around 130-140 bps over T-bills, while REC is aiming for 150-160 bps, but the levels are not yet finalised," the source added.

The sources requested anonymity as they are not authorised to speak to the media.

The companies did not reply to Reuters emails seeking comment.

Coupons for such floating-rate bonds are priced at a spread over three-month Treasury bill yields and reset quarterly.

When rate hikes are expected, these bonds become more attractive for both issuers and investors, as companies can borrow at a lower initial cost, while investors benefit from returns that could rise over time, without reinvestment risk.

Earlier this month, Cholamandalam Investment, Muthoot Finance, Tata Capital, Mahindra & Mahindra Financial Services, HDB Financial Services, 360 One Prime, and ICICI Home Finance Co were among the major issuers of such notes.

Bets that the Reserve Bank of India will raise interest rates as early as next week or in August have strengthened, with inflation expected to rise amid persistently high oil prices stemming from the Iran war.

India's overnight index swap rates have surged, with the one-year swap now pricing in around 100 bps of rate hikes over the next 12 months.

($1 = 95.0000 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Eileen Soreng)

(([email protected];))

** Shares of India's REC RECM.NS fall as much as 4.7%, last down 3.19% to 364.15 rupees,

** Co's Q4 profit dropped 21.7% y/y to 33.75 billion Indian rupees ($356.05 million); revenue dropped 5% YoY

** Macquarie ("Outperform"; TP:455 rupees) says quarterly profit missed estimates due to higher operating expenses, sharp rise in credit costs; loan growth remained subdued at ~3% y/y

** UBS ("Buy"; TP:490 rupees) says loan growth and disbursements were weak in quarter, while higher provisions lifted credit costs and weighed on earnings

** RECM rated "buy" on average by 14 analysts, median Pt at 455 rupees -- data compiled by LSEG

** YTD stock down 5.33%

($1 = 94.7900 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

April 28 (Reuters) - REC Ltd RECM.NS:

• REC Q4 CONSOL NET PROFIT 33.75 BILLION RUPEES

• REC Q4 CONSOL TOTAL REVENUE FROM OPERATIONS 145.64 BILLION RUPEES

• REC - DIVIDEND 1.55 RUPEES PER SHARE

Further company coverage: RECM.NS

(([email protected];))

April 15 (Reuters) - REC Ltd RECM.NS:

• REC - APPROVED APPOINTMENT OF RAJESH KUMAR AS CHIEF FINANCIAL OFFICER

Source text: ID:nBSEcwSHy

Further company coverage: RECM.NS

(([email protected];;))

March 20 (Reuters) - REC Limited RECM.NS:

• TO HOLD BOARD MEETING ON MARCH 25, 2026 FOR FY2026-27 MARKET BORROWING PROGRAMME

Source text: ID:nBSE5LcX5G

Further company coverage: RECM.NS

(([email protected];;))

March 16 (Reuters) - REC Limited RECM.NS:

• DECLARES INTERIM DIVIDEND OF 3.20 RUPEES PER SHARE FOR FY2025-26

Further company coverage: RECM.NS

(([email protected];))

MUMBAI, March 12 (Reuters) - India's REC RECM.NS has accepted bids worth 30 billion rupees ($324.92 million) for its five-year bond sale, three bankers said on Thursday.

The firm, however, withdrew its planned two-year issue of a similar quantum after investors demanded higher yields than it was willing to accept, one of the bankers said.

It will pay a coupon of 7.19% for the five-year bond and had invited coupon commitment bids for the issue earlier in the day, they said.

REC did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on March 12:

*Size includes base plus greenshoe for some issues

($1 = 92.3300 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

(([email protected], [email protected]))

MUMBAI, March 10 (Reuters) - India's REC RECM.NS plans to raise 60 billion rupees ($653.2 million) through the sale of bonds maturing in two years and five years, three bankers said on Tuesday.

The company has invited coupon and commitment bids for the issue on Thursday, they said.

REC did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on March 10:

*Size includes base plus greenshoe for some issues

($1 = 91.8560 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected]))

MUMBAI, Feb 18 (Reuters) - India's REC RECM.NS accepts bids worth 28.35 billion rupees in a sale of bonds maturing in two years, three bankers said on Wednesday.

The company will pay a coupon of 6.95% and had invited commitment bids for the issue earlier in the day, they said.

REC did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 18:

*Size includes base plus greenshoe for some issues

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Ronojoy Mazumdar)

(([email protected], [email protected]))

Feb 17 (Reuters) - Power Finance Corporation Ltd PWFC.NS:

• FITCH: AFFIRMS POWER FINANCE CORPORATION AND REC LIMITED AT 'BBB-'/STABLE ON MERGER PLAN

Source text: [ID:]

Further company coverage: PWFC.NS

(([email protected];))

MUMBAI, Feb 16 (Reuters) - India's REC RECM.NS plans to raise 30 billion rupees ($330.94 million), including a greenshoe option of 25 billion rupees, through a sale of bonds maturing in two years, three bankers said on Monday.

The company has invited coupon and commitment bids for the issue on Wednesday, they said.

REC did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 16:

*Size includes base plus greenshoe for some issues

($1 = 90.6500 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra)

(([email protected]))

By Dharamraj Dhutia

MUMBAI, Feb 11 (Reuters) - Indian state-run firms plan to raise 175 billion rupees ($1.93 billion) through bonds this week amid expectations that borrowing costs will rise further closer to the fiscal year end.

With sizable supply lined up, investors say the success of the bond sales will hinge on the firms' willingness to accept lower prices.

Corporate bonds have slipped in tandem with government notes, making fundraising expensive for firms and squeezing their margins.

Top-rated state-owned firms, including National Bank for Financing Infrastructure and Development (NaBFID), Housing and Urban Development Corp (HUDCO) HUDC.NS, Small Industries Development Bank of India (SIDBI) and Power Finance Corp, PWFC.NS will issue bonds this week, merchant bankers said.

"The pickup in issuance suggests companies have stopped waiting for borrowing costs to decline and have accepted that yields are unlikely to soften materially in the near term. They are choosing to access the market despite the high rates," said Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap.

The companies did not respond to emails seeking comment.

While NaBFID plans to issue 10-year bonds, HUDCO will issue perpetual bonds with a 10-year call option. SIDBI and PFC will issue notes with maturities of up to five years.

SIDBI and PFC withdrew their shorter-duration bond sales in December after investors sought higher yields. PFC’s issue will be closely watched following a proposed merger with REC.

"While interest exists for such issues, the key determinant will be the pricing," said Nikhil Aggarwal, founder & group CEO at Grip Invest, an online bond trading platform.

He noted that PFC's December bond sale was pulled over pricing. With interest rates on hold and the yield curve moving up, investors may demand higher yields.

Bond yields move inversely to prices.

LSEG benchmark 'AAA'-rated corporate bond yields are higher compared to the end of December, though they have retreated from recent highs hit immediately after India's federal budget earlier this month.

Investors expect the central bank to hold rates, and alongside higher government borrowing, rising inflation expectations and liquidity uncertainty, that is reinforcing a "higher-for-longer" rate view, Srinivasan said.

($1 = 90.5480 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected];))

** UBS says merger proposal of Indian power financiers PFC PWFC.NS and REC RECM.NS positive, but awaits more clarity on process

** Brokerage estimates for every 9 shares of REC, 8 shares of PFC would be offered; government stake could fall to 42% vs 56% in PFC

** Believes post merger, entity could see better margins and pricing power given larger overlap in customer base - UBS

** Adds, given that PFC, REC depend on implicit government support for cost of funds, continued support will be critical

** PFC and REC trim initial losses; last down 0.4% and 2.8%, respectively

** YTD, PFC up ~18%, REC up 1.7%

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

Feb 6 (Reuters) - India's Power Finance Corporation PWFC.NS said on Friday its board had approved an in-principle merger with REC Ltd RECM.NS.

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Shreya Biswas)

((mailto: [email protected]; @MukherjeeHritam;))

Feb 3 (Reuters) - REC Limited RECM.NS:

• CLARIFIES ON REPORT "GOVERNMENT CONSIDERING MERGER OF STATE-RUN ENTITIES PFC AND REC"

• COMPANY IS NOT ENGAGED IN ANY SUCH DISCUSSIONS OR NEGOTIATIONS

Source text: ID:nBSE1rKKRv

Further company coverage: RECM.NS

(([email protected];;))

Corrects headline and second bullet point to say budget proposes restructuring of PFC and REC, not power finance sector

** Indian power finance stocks PFC and REC rise between 3.5% and 5%

** Indian Finance Minister Nirmala Sitharaman announced the restructuring of Power Finance Corporation PWFC.NS and Rural Electric Corporation RECM.NS in the fiscal 2027 budget

** REC Ltd shares up 3.6% and Power Finance Corp Ltd up 4.1%

(Reporting by Brijesh Patel in Bengaluru)

(([email protected]; Ph no. +91 9590227221;))

Jan 29 (Reuters) - REC Limited RECM.NS:

• REC DEC-QUARTER CONSOL NET PROFIT 40.52 BILLION RUPEES

• REC DEC-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 150.18 BILLION RUPEES

• REC- DECLARES DIVIDEND OF 4.60 RUPEES PER SHARE

Further company coverage: RECM.NS

(([email protected];))

By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, Dec 5 (Reuters) - A rate cut and easy monetary policy guidance by India's central bank lifted bonds on Friday, triggering $2.7 billion of issuance from state-run companies and lenders, bankers said.

Four state-run firms - REC RECM.NS, Housing and Urban Development Corp HUDC.NS, Power Finance Corp PWFC.NS and NTPC NTPC.NS - and two state-run lenders Indian Bank INBA.NS and Bank of India BOI.NS will raise an aggregate of 240 billion rupees (about $2.7 billion) in the next two weeks, the bankers said.

The Reserve Bank of India cut its key repo rate by 25 basis points and left the door open for further easing as it boosted banking system liquidity by $16 billion in the next two weeks.

This pushed the 10-year government bond yield down 2-3 basis points and 15-to-40 year yields down 7-8 bps, boosting appetite for long-term corporate bonds, the supply of which has been low.

"With policy clarity and a steady rate environment, many long-term investors are keen to lock in yields and diversify duration. As a result, well-rated public sector issuers are likely to see robust appetite for their upcoming bond placements," Vineet Agrawal, co-founder of Jiraaf, a bond trading platform, said.

Indian firms have raised 10.07 trillion rupees through bonds in January-November, and supply for 2025 is set to hit a record.

PFC will aim to raise 35 billion rupees through 15-year bonds, while NTPC could raise 30 billion rupees through 10-year or 15-year papers, the bankers, who declined to be named as they are not authorised to speak to media, said.

HUDCO and REC are likely to raise up to 50 billion rupees each through 10-year deep-discount bonds, they said.

Bank of India aims to raise 30 billion rupees, while Indian Bank will look to raise 50 billion rupees through Basel III-compliant tier II bonds, according to the bankers.

The firms did not reply to Reuters' emails seeking comment.

Bankers said that with the trajectory of yields seen downwards, insurance companies are expected to participate strongly in bidding for these AAA-rated papers.

"We continue to see room for an additional 25-basis-point repo rate cut," said Sachin Bajaj, executive vice president and chief investment officer at Axis Max Life Insurance.

($1 = 89.9480 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected];))

Oct 17 (Reuters) - REC Limited RECM.NS:

• SEPT-QUARTER CONSOL NET PROFIT 44.15 BILLION RUPEES

• SEPT-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 151.53 BILLION RUPEES

• DECLARATION OF 2ND INTERIM DIVIDEND AT 4.60 RUPEES PER SHARE

Source text: [ID:]

Further company coverage: RECM.NS

(([email protected];;))

July 7 (Reuters) - REC Limited RECM.NS:

• REC - UMRED POWER TRANSMISSION, SAKOLI POWER TRANSMISSION INCORPORATED AS SUBSIDIARY OF RECPDCL

Source text: ID:nBSE9T6BML

Further company coverage: RECM.NS

(([email protected];))