PFC-REC Merger Exchange Ratio — 88:100 Share Ratio

The share exchange ratio details the number of shares you’ll receive in the acquiring company for each share you own in the target company. This ratio directly impacts your ownership percentage post-merger.

Key Example: PFC-REC Merger

Exchange Ratio: 88 PFC shares for every 100 REC shares.

Impact: If you owned 100 REC shares, you will receive 88 PFC shares after the merger.

Calculating New Ownership Percentage

Determine Current Holding: Suppose you own 1,000 REC shares.

Apply Exchange Ratio: You will receive (1,000 × 88) = 88,000 PFC shares.

Total Shares Outstanding:

Pre-merger: Total REC shares outstanding (e.g., 10 million).

Post-merger: Total PFC shares outstanding will increase to accommodate new shares issued to REC shareholders.

New Ownership Percentage:

\[ \text{New Ownership} = \frac{\text{Your New Shares}}{\text{Total New Shares Outstanding}} \]

Example Calculation

Assume:

REC has 10 million shares outstanding.

PFC has 15 million shares outstanding pre-merger.

PFC issues 8.8 million new shares to REC shareholders (based on the 88:100 ratio and 10 million REC shares).

Post-Merger PFC Shares Outstanding: 15 million (existing) + 8.8 million (new) = 23.8 million shares.

If you owned 1,000 REC shares:

You receive 880 PFC shares.

Your ownership percentage = (880 / 23,800,000) × 100 ≈ 3.7%.

General Impact

Dilution: Your ownership percentage in the combined entity typically decreases due to the increase in total shares outstanding.

Value Retention: While your percentage ownership may fall, the value of your holding depends on the post-merger share price and the perceived synergy benefits.

Note: Always verify the exact exchange ratio and total shares outstanding from the official merger announcement or regulatory filings for precise calculations.

📌 Next Steps

Review the Official Prospectus: This will provide the exact exchange ratio and details on share calculation.

Consult a Financial Advisor: For personalized impact analysis on your portfolio.

🔍 For Deep Analysis (click below):

How does the merger affect PFC and REC’s credit ratings and borrowing costs?

What are the projected synergies, and how might they influence post-merger valuation?

How will this merger impact other players in the power financing sector?

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Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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