Overview
- Economic Times reports the merger scheme may include a preferential allotment to the Centre to preserve the merged NBFC’s government‑company status, with incremental equity of roughly Rs 16,000–17,000 crore under consideration.
- ET says both boards have approved a merger plan and advisers are expected to be engaged within about two weeks, while earlier disclosures confirmed PFC’s in‑principle approval.
- CreditSights expects the combined lender to overcome RBI’s 30% of Tier‑1 single‑counterparty cap, enabling larger underwriting and refinancing, including overseas dollar bonds, for renewable developers and major grid investments.
- CreditSights also flags a likely, modest reduction in competition with some upward pressure on funding costs, though the impact on renewable players is expected to be manageable.
- Motilal Oswal retains Buy ratings with SoTP targets of Rs 500 for PFC and Rs 430 for REC, citing operating synergies and stronger bargaining power; Q3 updates show PFC profit up 15% year‑on‑year and REC PAT roughly flat with improved asset quality.