REC Limited Transfers Nawada Durgapur Transmission SPV To Shivalaya Construction For INR 18.44 Crore

REC Limited has completed the sale and transfer of its project-specific subsidiary, Nawada Durgapur Power Transmission Limited, to Shivalaya Construction Limited following the receipt of the required financial consideration by REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited. The transaction was finalised on October 16, 2026, marking the transfer of ownership and associated assets and liabilities of the special purpose vehicle (SPV).

Under the transaction, RECPDCL transferred its entire shareholding of 50,000 equity shares in Nawada Durgapur Power Transmission Limited to Shivalaya Construction Limited. The Share Purchase Agreement between RECPDCL and the successful bidder was executed on October 16, 2026. Following the completion of the transfer, Nawada Durgapur Power Transmission Limited ceased to be a subsidiary of both RECPDCL and REC Limited.

The total consideration received for the transaction was ₹18,44,62,442, inclusive of applicable taxes. The amount includes the acquisition price, professional fees and reimbursement of expenses associated with the transfer. Shivalaya Construction Limited was selected as the successful bidder through a tariff-based competitive bidding process for the transmission project.

REC Limited clarified that Shivalaya Construction Limited does not belong to its promoter or promoter group. The transaction is also not classified as a related-party transaction. Additionally, the transfer has not been structured as a slump sale. The valuation for the transaction was determined in accordance with the applicable guidelines issued by the Ministry of Power, Government of India.

According to the company’s disclosure, Nawada Durgapur Power Transmission Limited had a negligible contribution to REC Limited’s turnover, revenue, income and net worth during the preceding financial year. Therefore, the divestment is not expected to have a significant impact on the company’s overall financial performance based on the reported contribution of the subsidiary.

The transfer forms part of the process of transferring ownership of the project-specific transmission entity to the successful bidder selected through competitive bidding. With the transaction completed, Shivalaya Construction Limited has acquired the SPV along with its corresponding assets and liabilities, as specified in the transfer arrangements.