REC Divests Two Power Transmission Subsidiaries to Ceigall India and Tata Power

New Delhi: Maharatna CPSE REC Limited has completed the sale and transfer of two project-specific subsidiaries following receipt of full consideration by its wholly owned arm REC Power Development and Consultancy Limited (RECPDCL).

The transaction was executed on 9 January 2026 in accordance with Regulation 30 of SEBI Listing Regulations.

The subsidiaries transferred are:

• Velgaon Power Transmission Limited
  Successful bidder: Ceigall India Limited

• Jejuri Hinjewadi Power Transmission Limited
  Successful bidder: The Tata Power Company Limited

Each subsidiary comprised 50,000 equity shares, which have now been transferred at par value along with all assets and liabilities. With this transaction, both entities have ceased to be subsidiaries of RECPDCL and REC Limited with effect from 9 January 2026.

Transaction Highlights

The Share Purchase Agreements were executed on 9 January 2026 with the respective successful bidders selected through tariff-based competitive bidding.

The consideration received includes professional fees and reimbursement of expenses:

• Velgaon Power Transmission Limited: Rs 1.06 crore (approx) including taxes

• Jejuri Hinjewadi Power Transmission Limited: Rs 1.57 crore (approx) including taxes

Both subsidiaries had negligible contribution to the turnover and net worth of REC Limited in the last financial year.

Regulatory and Governance Aspects

REC clarified that:

• The buyers are not related to the promoter or promoter group

• The transaction does not fall under related party transactions

• The sale does not qualify as a slump sale

• The transaction is outside any scheme of arrangement

• The consideration has been determined as per guidelines of the Ministry of Power, Government of India

This divestment aligns with REC’s ongoing strategy of monetising project-specific special purpose vehicles after completion of the competitive bidding process.