Description

HAL responds to media reports about AMCA project allocation, while PFC clarifies news regarding potential merger with REC following Union Budget 2026 announcement.

Summary

BSE circular containing clarifications from two companies in response to media reports. Hindustan Aeronautics Ltd (HAL) responds to Business Standard article about AMCA project allocation, stating official communication from DRDO is pending. Power Finance Corporation Ltd (PFC) clarifies Economic Times report regarding potential merger with REC, referencing Union Budget 2026 announcement about NBFC consolidation.

Key Points

  • HAL (Scrip Code: 541154): Responds to article titled “HAL won’t build AMCA; competition between Tata, L&T and Kalyani now: Source”
  • HAL states it cannot comment on the news as official communication from DRDO has not been received
  • Material impact can only be assessed after receipt of official communication
  • PFC: Clarifies news about government considering merger of PFC and REC
  • PFC acquired 52.63% government holding in REC in March 2019 following CCEA approval in December 2018
  • REC became subsidiary of PFC with transfer of management control
  • Hon’ble Finance Minister announced vision for NBFCs in Union Budget 2026 on February 01, 2026
  • Budget announcement mentions achieving scale and improving efficiency in Public Sector NBFCs

Regulatory Changes

No new regulatory changes introduced. This circular is issued under Regulation 30 of SEBI (LODR) Regulations, 2015 requiring disclosure of material events and clarifications on media reports.

Compliance Requirements

  • Companies must provide clarifications on media reports that may impact stock price movements
  • Disclosure must include sequence of events, awareness of undisclosed information, material impact assessment, and regulatory/legal proceedings if applicable
  • Companies must respond to stock exchange queries promptly

Important Dates

  • February 4, 2026: Date of HAL clarification filing
  • February 3, 2026: Date of PFC clarification filing and BSE query
  • February 2/3, 2026: Date of Economic Times article on PFC-REC merger
  • February 01, 2026: Union Budget 2026 announcement by Finance Minister
  • December 06, 2018: CCEA gave ‘In Principle’ approval for PFC to acquire REC
  • March 2019: PFC acquired REC and became promoter

Impact Assessment

HAL: Medium impact - Awaiting official communication from DRDO regarding AMCA project. If HAL is excluded from AMCA manufacturing, this could affect future defense project participation and revenue streams. Competition from private players (Tata, L&T, Kalyani) represents strategic shift in defense manufacturing landscape.

PFC: Medium impact - Union Budget 2026 announcement suggests government intent to consolidate public sector NBFCs for scale and efficiency. PFC already controls REC as subsidiary since 2019. Further integration or formal merger could affect organizational structure, operations, and market positioning of both entities in power sector financing.

Impact Justification

HAL clarification on AMCA project has potential strategic implications but awaits official communication; PFC clarification references Union Budget 2026 announcement regarding NBFC consolidation affecting PFC-REC structure