REC Limited has successfully divested its entire shareholding in two wholly-owned subsidiaries. The transaction, completed on September 23, 2026, involved the transfer of 50,000 equity shares each, along with all associated assets and liabilities. This strategic move is part of REC’s ongoing portfolio management and aims to unlock value from project-specific Special Purpose Vehicles (SPVs).
REC Divests Project-Specific Subsidiaries
REC Limited announced the completion of the sale and transfer of its project-specific Special Purpose Vehicles (SPVs)/subsidiaries. This transaction, executed on September 23, 2026, involved the divestment of REC Power Development and Consultancy Limited’s (“RECPDCL”) entire shareholding in two subsidiaries. RECPDCL is a wholly-owned subsidiary of REC Limited.
Transaction Details
The divestment comprises 50,000 equity shares in each of the two subsidiaries. These shares were transferred, along with all their respective assets and liabilities, to the successful bidders selected through a tariff-based competitive bidding process. Following this transaction, these entities are no longer subsidiaries of RECPDCL or REC Limited.
Subsidiaries and Successful Bidders
The two subsidiaries transferred are:
- Barmer HVDC Power Transmission Limited, successfully bid for by Power Grid Corporation of India Limited.
- Sakoli Power Transmission Limited, successfully bid for by Ashoka Buildcon Limited.
Financial and Transactional Aspects
For Barmer HVDC Power Transmission Limited, the consideration comprises an acquisition price of ₹18,97,52,835/- (including taxes), inclusive of professional fees and expense reimbursements. The Share Purchase Agreement (SPA) was executed on September 23, 2026. The contribution to turnover, revenue, income, and net worth from this unit was negligible in the last financial year.
Similarly, for Sakoli Power Transmission Limited, the consideration is ₹3,05,84,508/- (including taxes), also inclusive of professional fees and expense reimbursements. The SPA was also executed on September 23, 2026. This subsidiary also had a negligible contribution to the turnover, revenue, income, and net worth in the prior financial year.
The transactions are not considered slump sales and were determined in accordance with the guidelines issued by the Ministry of Power. Importantly, the successful bidders do not belong to the promoter or promoter group, and the transactions do not fall within the purview of related party transactions.
Source: BSE
