REC and Power Finance Corporation (PFC) are set to benefit from JSW Energy’s ₹160 billion acquisition of KSK Mahanadi Power, with their exposure to the stressed asset standing at ₹26-33 billion. The shares of REC and PFC were trading at ₹427.60 (up 2.44 per cent) as of today at 13.21.

The acquisition price is 28 per cent higher than Adani Power’s previous bid, strengthening the recovery outlook for both lenders. REC and PFC’s exposure to KSK Mahanadi represents approximately 0.5-0.7 per cent of their respective loan books, with both companies maintaining a 52-55 per cent provision coverage on the asset.

The state-owned financiers had been projecting nearly 100 per cent recovery from this exposure. This development marks a significant step in resolving their stressed assets portfolio.

Other key stressed assets in the resolution pipeline include Sinnar Thermal, Hiranmaye Energy, and Bhadreshwar Vidyut, which investors are closely monitoring for similar recovery prospects.

PFC today announced the transfer of its Kudankulam ISTS Transmission Limited to Power Grid Corporation of India for ₹7.44 crore, continuing its strategy of asset monetization.