PTC India (formerly Power Trading Corporation of India) has revived plans to sell its controlling stake in its NBFC arm PTC India Financial Services, according to an official disclosure to the stock exchanges. The Delhi-headquartered firm, which is backed by NTPC, Power Grid Corporation and Power Finance Corporation, has invited potential suitors or investors to submit their expression of interest by July 31.
The board of PTC India had initially proposed the divestment plans to shareholders on August 7, 2019 but received the requisite internal approvals for the deal after delays on account of the ongoing COVID-19 pandemic.
“As the parent, PTC India wants to dilute its majority stake in PTC India Financial Services as the latter is non-core to its operations,” an individual told Moneycontrol. The deal is likely to attract interest from infrastructure-focused NBFCs and funds who are keen to float an infra development fund as the target has the licence due to its IFC (infrastructure finance company) status, he added.
PTC India currently holds a 64.99 percent stake in PTC India Financial Services and at current market capitalisation the value of the majority stake is around Rs 572 crore.
“IDFC Securities has been appointed as transaction advisor for the deal and the promoters are looking to exit at a premium,” a second individual told Moneycontrol.
Both individuals spoke on the condition of anonymity. Moneycontrol is awaiting an email response from PTC India and will update this article as soon as we hear from the company. IDFC Securities couldn’t be reached immediately for a comment.
“We further submit that after obtaining necessary board/shareholder approvals (as required) and execution of the definitive agreement(s) with the investor(s), the company will update the stock exchanges in accordance with applicable laws,” the official announcement stated.
PTC India Financial Services, being an infrastructure finance company, is engaged in the business of making investments in, and providing financing solutions to companies with projects in the power sector and related areas across the entire energy value chain. The business model of the firm is to partner in infrastructure development and support the power sector by catering to the financial requirements of the sector. According to its website, the firm offers debt financing, fee-based services and also equity investments for both greenfield and brownfield projects.
PTC India, a leading provider of power trading solutions in India, was established in the year 1999 as a Government of India initiated public-private partnership, with a mandate to develop a commercially vibrant power market in the country.
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