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An announcement from REC Limited ( (IN:RECLTD) ) is now available.
REC Limited has announced that its wholly owned subsidiary, REC Power Development and Consultancy Limited, has sold and transferred its entire shareholding in project-specific special purpose vehicle Umred Power Transmission Limited. The 50,000 equity shares were transferred at par value, along with all assets and liabilities, to Maharashtra State Electricity Transmission Company Limited, selected through a tariff-based competitive bidding process, for consideration of about ₹2.34 crore.
Following the transaction on 26 February 2026, Umred Power Transmission Limited ceases to be a subsidiary of both RECPDCL and REC Limited, though the SPV had contributed negligible revenue and net worth in the last financial year. The deal, conducted on an arm’s length basis and not classified as a related-party or slump sale transaction, aligns with Ministry of Power guidelines and underscores REC’s role as a developer and transferor of grid assets rather than a long-term operator, with limited financial impact on the parent’s consolidated results.
More about REC Limited
REC Limited is a Government of India-owned infrastructure finance company focused on the power sector, providing funding and consultancy services for transmission, distribution and generation projects. Through its wholly owned subsidiary REC Power Development and Consultancy Limited, the group also develops project-specific special purpose vehicles that are later transferred to sector utilities via competitive bidding, supporting policy-driven expansion of India’s electricity network.
Average Trading Volume: 509,149
Technical Sentiment Signal: Hold
Current Market Cap: 931.4B INR
Learn more about RECLTD stock on TipRanks’ Stock Analysis page.