REC subsidiary divests power transmission stake to Power Grid Corporation

REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, announced the transfer of its entire shareholding in Davanagere Power Transmission Limited. The transaction, involving 50,000 equity shares, was finalized on September 24, 2025, at par value to Power Grid Corporation of India Limited, the successful bidder from a tariff-based competitive bidding process.

The consideration for this sale comprises a professional fee of ₹5 Crore and reimbursement of expenses. Following the transfer, Davanagere Power Transmission Limited is no longer a subsidiary of RECPDCL or REC Limited. Power Grid Corporation of India Limited is not part of REC's promoter or promoter group.

The transaction is not classified as a related party transaction nor is it considered a slump sale. The sale and transfer consideration aligns with guidelines issued by the Ministry of Power, Government of India.