Power Grid share price jumps 2% after government rejects proposal of buying PFC's stake in REC

Power Grid Share Price: Shares of PSU Maharatna company Power Grid Corporation of India (PGCIL) recovered on Tuesday after the government rejected a proposal to acquire Power Finance Corporation's stake in REC (earlier known as Rural Electrification Corporation).

Power Grid share price jumped over 2 per cent in early trade to hit day's high of Rs 207.90. 

Power Grid share price has been under pressure for the last one week. The counter has declined over 13% in the last five sessions.

The development comes in the backdrop of reports that the Power Ministry is in talks with Power Grid to purchase PFC’s 52.63% in REC. Back in 2019, PFC had acquired 52.63% stake in REC for Rs 14,500 as part of the government's consolidation programme. 

Recently, REC was accorded the status of a 'Maharatna' central public sector enterprise (CPSE), thus giving it greater operational and financial autonomy.

Incorporated in 1969, REC is a non-banking finance company (NBFC), focussing on power sector financing and development across India. It comes under the aegis of Power Ministry. The company has contributed towards achieving village and household electrification in the country.