REC Limited has completed the divestment of two power transmission subsidiaries through its wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL). The transactions were finalized on January 9, 2026, following a tariff-based competitive bidding process conducted in accordance with Ministry of Power guidelines.

Transaction Overview

The divestment involved the complete transfer of shareholding in two project-specific Special Purpose Vehicles (SPVs), each comprising 50,000 equity shares transferred at par value along with all associated assets and liabilities.

Subsidiary Transfer Details

The two power transmission companies have been acquired by established players in the Indian power sector:

Financial and Regulatory Aspects

Both subsidiaries contributed negligible amounts to REC Limited's turnover, revenue, and net worth during the last financial year. The consideration received comprises professional fees including taxes and reimbursement of expenses, determined according to Ministry of Power guidelines.

Key regulatory confirmations include:

• Neither transaction falls within the purview of related party transactions
• Both successful bidders are independent entities not belonging to REC's promoter or promoter group
• The transactions are not in the nature of slump sales
• No compliance requirements under Regulation 37A of LODR Regulations apply

Corporate Structure Impact

Following the completion of these transactions, both Velgaon Power Transmission Limited and Jejuri Hinjewadi Power Transmission Limited are no longer subsidiaries of RECPDCL or REC Limited. The divestment aligns with REC's strategic focus on its core business operations while ensuring these transmission projects continue under experienced industry operators.

The Share Purchase Agreements were executed between RECPDCL and the respective successful bidders on January 9, 2026, marking the formal completion of the divestment process that began with the competitive bidding exercise.

REC Limited has secured an 'Excellent' rating from the Department of Public Enterprises (DPE), Ministry of Finance, for its Memorandum of Understanding (MoU) Performance for the financial year 2024-25. The company announced this achievement through a regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Performance Rating Details

The rating assessment is based on the MoU signed between REC Limited and its holding company, Power Finance Corporation Limited. The Department of Public Enterprises evaluates performance according to prescribed guidelines established for such assessments.

Consecutive Excellence Achievement

This latest recognition represents REC Limited's third consecutive year of achieving the 'Excellent' rating. The company emphasized that this consistent performance highlights its excellence in both operational and financial domains. The sustained achievement of the highest rating category demonstrates the company's ability to maintain superior performance standards across multiple fiscal years.

Regulatory Compliance

REC Limited disclosed this information in compliance with SEBI regulations, specifically under Regulation 30 which mandates the disclosure of material events and information. The announcement was made through official communication to both the National Stock Exchange of India Limited and BSE Limited, ensuring transparency with stakeholders and the investment community.

The achievement reinforces REC Limited's position as a well-performing entity within the public sector enterprise framework, meeting and exceeding the performance benchmarks established by the government's evaluation mechanisms.