Nature of the Event
The entire shareholding of Nawada Durgapur Power Transmission Limited, comprising of 50,000 equity shares, held by REC Power Development and Consultancy Ltd (RECPDCL - a wholly owned subsidiary of REC Limited), has been transferred along with all its assets and liabilities. The transfer was effected on October 16, 2026. Consequently, the entity ceased to be a subsidiary of RECPDCL and REC Limited from that date.
Key Quantitative Figures & Transaction Details
The transaction involved the sale of 50,000 equity shares. The total consideration received was ₹18,44,62,442 (inclusive of taxes). This amount comprises the acquisition price and includes professional fees and reimbursement of expenses.
Dates of Action
The Share Purchase Agreement (SPA) was executed between RECPDCL and the successful bidder on October 16, 2026. The transfer of shares and the cessation of subsidiary status also became effective on October 16, 2026.
Parties Involved
Seller: REC Power Development and Consultancy Ltd (RECPDCL), a wholly-owned subsidiary of REC Limited.
Asset Sold: Nawada Durgapur Power Transmission Limited.
Buyer: Shivalaya Construction Limited, selected as the successful bidder through a tariff-based competitive bidding process. The buyer does not belong to the Promoter or Promoter group of REC Limited.
Purpose or Rationale
The sale was conducted through a tariff-based competitive bidding process. The consideration was determined in accordance with guidelines issued by the Ministry of Power, Government of India.
Financial and Operational Impact
The financial impact is the receipt of ₹18.44 crore. The operational impact is the exit from the project-specific SPV, Nawada Durgapur Power Transmission Limited.
Additional Details from Annexure
The transaction is not a related party transaction and was conducted at arm's length. The sale is not in the nature of a slump sale. The revenue from the unit in the last financial year was negligible.