PFC-REC Meger: The recently announced merger of Power Finance Corporation (PFC) and REC Ltd is fueling hopes that power sector linked financing will get a major boost in the world’s fastest growing economy.
The restructuring of these two companies mentioned as part of Nirmala Sitharaman’s ninth-consecutive union budget speech has money managers looking at two ways that’ll place more cash in the pockets of India Inc.
The first view is that companies combined have outstanding rupee bonds of Rs 5.5 trillion ($61 billion) — accounting for nearly 10 per cent of the local market, and this merger would ensure a part of this is utilised for reinvestment purposes.
That’s because money managers will eventually need to find new investments to…