Description
BSE circular containing clarifications from Hindustan Aeronautics Ltd regarding AMCA project news and Power Finance Corporation regarding merger speculation with REC.
Summary
BSE circular containing clarifications from two companies under Regulation 30 of SEBI (LODR) Regulations, 2015 in response to media reports. Hindustan Aeronautics Ltd (HAL) clarified regarding news about AMCA project competition, stating official communication from DRDO is pending. Power Finance Corporation Ltd (PFC) clarified regarding news about potential merger with REC, referencing the Union Budget 2026 announcement on NBFC consolidation.
Key Points
- HAL responded to news article about AMCA project stating competition between Tata, L&T and Kalyani
- HAL stated official communication from DRDO not yet received, cannot comment on the news
- Material impact can only be assessed after receipt of official communication from DRDO
- PFC clarified news regarding merger with REC, referencing historical context
- PFC acquired 52.63% government holding in REC in March 2019 following CCEA approval
- Union Budget 2026 (February 1, 2026) announced vision for NBFC consolidation for Viksit Bharat
- Finance Minister directly announced plans for improving efficiency in Public Sector NBFCs
Regulatory Changes
No new regulatory changes introduced. Circular demonstrates compliance with existing Regulation 30 of SEBI (LODR) Regulations, 2015 requiring disclosure and clarification on material news items.
Compliance Requirements
- Companies must provide clarifications on news articles that may impact trading or contain material information
- Companies must respond to stock exchange queries regarding media reports
- Disclosure required even when official information is pending, with appropriate caveats
- Companies must maintain transparency regarding negotiations, material impacts, and regulatory proceedings
Important Dates
- February 4, 2026: Date of HAL clarification letter
- February 3, 2026: Date of PFC clarification letter
- February 2-3, 2026: Date of media articles requiring clarification
- February 1, 2026: Union Budget 2026 announcement on NBFC consolidation
- December 6, 2018: CCEA ‘In Principle’ approval for PFC-REC acquisition
- March 2019: PFC acquired REC and became its promoter
Impact Assessment
HAL (Scrip Code: 541154, NSE: HAL):
- Uncertainty remains regarding HAL’s role in AMCA (Advanced Medium Combat Aircraft) project
- Potential material impact pending official communication from DRDO
- News suggests possible shift of AMCA project to private sector players (Tata, L&T, Kalyani)
- Could significantly impact HAL’s future order book and strategic positioning if confirmed
PFC (Power Finance Corporation):
- Merger speculation with subsidiary REC Ltd resurfaces
- Historical context: PFC already owns 52.63% of REC since 2019
- Union Budget 2026 signals government intent for NBFC consolidation
- Potential merger could create larger, more efficient power sector financing entity
- Market participants should monitor for official announcements on merger structure and timeline
Market Impact:
- Clarifications provide transparency but leave key questions unanswered pending official communications
- Both companies demonstrate compliance with disclosure requirements under uncertain circumstances
Impact Justification
Contains clarifications from two major PSU companies on media reports regarding significant business developments - HAL on AMCA project and PFC on potential merger with REC