Power Finance Corporation Limited (PFC) has completed the transfer of its wholly owned subsidiary TUMKUR II RE Transmission Limited to Power Grid Corporation of India Limited. The transaction closed on May 29, 2026, with Power Grid Corporation as the successful bidder.
TUMKUR II RE Transmission Limited was established as a special purpose vehicle for developing the Transmission System Strengthening at Tumkur-II. The project supports the integration of additional renewable energy potential of 1.5 GW into the national grid.
TUMKUR II RE Transmission Limited was a wholly owned subsidiary of PFC Consulting Limited, which itself is a wholly owned subsidiary of Power Finance Corporation Limited. The financial contribution of this unit to PFC's revenue income and net worth during the last financial year was negligible.
The transfer was executed through a Share Purchase Agreement. PFC received a total consideration of Rs 15.46 crore for the sale and transfer of the SPV to Power Grid Corporation of India Limited.
Power Grid Corporation of India Limited does not belong to the promoter or promoter group of PFC. The transaction does not fall within the purview of related party transactions. The sale is not in the nature of a slump sale.
The consideration was determined in accordance with guidelines issued by the Ministry of Power, Government of India. The process for sale and transfer of the SPV to the successful bidder was completed on May 29, 2026.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.