REC Limited has sold its subsidiary, Davanagere Power Transmission Limited, to a successful bidder. The sale, completed on September 24, 2025, involved the transfer of 50,000 equity shares held by REC’s subsidiary, RECPDCL, along with all assets and liabilities. The project-specific SPV is no longer a subsidiary of RECPDCL or REC Limited. REC received a professional fee of ₹5 Crore and reimbursement of expenses.
Subsidiary Divestiture
REC Limited has divested its entire shareholding in Davanagere Power Transmission Limited, previously held through its wholly-owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL). The transaction was completed on September 24, 2025, following a tariff-based competitive bidding process.
Transaction Details
The sale involved the transfer of 50,000 equity shares of Davanagere Power Transmission Limited, along with all associated assets and liabilities, to the successful bidder. The consideration received by REC included a professional fee of ₹5 Crore, as well as reimbursement of expenses.
Impact of the Sale
As a result of this transaction, Davanagere Power Transmission Limited is no longer a subsidiary of RECPDCL or REC Limited. The successful bidder is Power Grid Corporation of India Limited. The transaction does not fall within related party purview and is not considered a slump sale.
Source: BSE
