REC Limited has successfully divested its entire shareholding in two wholly-owned project-specific subsidiaries: Bhadla Ramgarh Power Transmission Limited and Shongtong Power Transmission Limited. The sale, completed on July 29, 2026, involved 50,000 equity shares for each subsidiary. The total consideration for these transactions amounts to approximately ₹2,580 crore, marking a significant move in REC’s strategic divestment plans.
REC Limited Divests Project Subsidiaries
REC Limited has announced the completion of the sale and transfer of its project-specific subsidiaries, Bhadla Ramgarh Power Transmission Limited and Shongtong Power Transmission Limited. The transactions, effective July 29, 2026, involved the transfer of REC’s entire shareholding in these entities. This strategic move is part of the company’s ongoing efforts to streamline its portfolio and focus on core growth areas.
Transaction Details and Consideration
The sale encompassed the transfer of 50,000 equity shares for each subsidiary. Bhadla Ramgarh Power Transmission Limited was transferred to its successful bidder, Power Grid Corporation of India Limited, for a consideration of approximately ₹12,85,79,427 (including taxes). Similarly, Shongtong Power Transmission Limited was sold to Terralight Solar Energy Tinwari Private Limited for approximately ₹20,40,66,599 (including taxes). The combined consideration for these two SPVs is substantial, reflecting their value and market position.
Strategic Rationale and Impact
The transfer of these subsidiaries was conducted through a tariff-based competitive bidding process, ensuring transparency and value maximization. Following the sale, these entities are no longer considered subsidiaries of REC Power Development and Consultancy Limited (RECPDCL) or REC Limited. The company has confirmed that the transactions were conducted at arm’s length and do not fall within the purview of related party transactions. Further details regarding the sale, including compliance with relevant regulations, are attached as Annexure-1.
Source: BSE
