REC Limited has announced the sale and transfer of its subsidiary, Lakadia B Power Transmission Limited, through a competitive bidding process. On February 14, 2025, REC Power Development & Consultancy Limited (RECPDCL), a wholly-owned subsidiary of REC, transferred its entire shareholding in Lakadia B Power Transmission Limited. The company transferred 50,000 equity shares at their par value, along with all associated assets and liabilities, to the successful bidder.
The sale followed the completion of the necessary consideration by RECPDCL. As a result, Lakadia B Power Transmission Limited is no longer a subsidiary of RECPDCL or REC from the date of the transfer. The company also provided the details as per SEBI’s requirements in Annexure-I.
The key details of the sale include the following: Lakadia B Power Transmission Limited’s turnover and net worth contribution to REC was negligible in the last financial year. The Share Purchase Agreement (SPA) for the sale was executed between RECPDCL and the successful bidder on February 14, 2025. The consideration for the sale included a professional fee of ₹5 crore and reimbursement of expenses.
The successful bidder for the project is Reliance Industries Limited, which is not part of REC’s promoter group. The transaction does not qualify as a related party transaction, and it was conducted at arm’s length. Additionally, the transaction is not classified as a slump sale, as the sale and transfer were carried out based on guidelines from the Ministry of Power, Government of India.
This sale marks a significant move for REC Limited, as it aligns with their ongoing efforts to streamline operations and focus on core business activities. The transfer of Lakadia B Power Transmission Limited to Reliance Industries is now complete, with no impact on REC’s strategic direction moving forward.
