The shares of Power Finance Corporation (PFC) and REC will remain in focus after the former’s board approved seeking formal approval from the President of India for the proposed mega merger of the two PSU non-banking financial corporations.In an exchange filing released on Saturday, PFC announced that its board of directors during its meeting authorised its Chairman and Managing Director Parminder Chopra to apply for and seek the President’s approval for the proposed merger, which will be executed on a share exchange ratio to be determined by the by valuers appointed for the transaction.“Upon the merger being duly approved under applicable law and being made effective, all the assets and liabilities of REC shall be transferred to PFC, and REC shall stand dissolved,” PFC further said, while clarifying that it will continue to retain its "government company" status, including through possible issuance of securities or capital infusion by the central government if required. The proposed merger is still subject to final board approval and multiple regulatory clearances and permissions.Also Read | PFC board clears next step for REC merger, seeks govt approvalAll about PFC-REC mergerEarlier in February this year, Union Finance Minister Nirmal Sitharaman after presenting the Union Budget, said that the government will restructure Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) in order to streamline operations. The shares of the two companies had sharply jumped following the announcement.Also Read | Rationalising PFC - REC merger, says FM Nirmala SitharamanThe Cabinet Committee on Economic Affairs cleared a proposal under which PFC acquired 52.63% of the government's holding in REC. With this acquisition, PFC and REC are currently operating in a holding subsidiary structure.The proposed merger would consolidate the two entities into a single balance sheet, subject to statutory approvals and detailed structuring.Also Read | PFC announces merger with REC in line with Budget 2026 roadmapREC share priceREC shares have declined around 2% in one week and more than 7% in one month. The stock is down 6% in 2026 so far and 15% in one year. In the longer term, the shares of the company jumped 167% in three years and 224% in five years.PFC share pricePFC shares meanwhile declined 4% in one month, but gained 23% in 2026 so far and 7% in one year. The stock rallied 238% in three years and 379% in five years.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)