The share price of PTC India, India’s biggest power trading firm, was again under pressure, down 3 percent on December 19 morning, as reports suggested that public sector undertakings(PSUs) were looking to sell their stake in the scandal-hit firm.
At 10 am, the stock was quoting at Rs 82.30 on the National Stock Exchange, down 2.95 percent from the previous session. In the last three trading sessions, PTC has slumped 10 percent.
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According to a Mint report, state-run Power Grid Corp of India, Power Finance Corp of India, NTPC and NHPC have decided to sell their stakes in the power-trading company after allegations of a lapse in corporate governance surfaced.
ICICI Securities has been hired as the investment banker for the deal, the report said.
Also Read: State-run power major NTPC aims to dump stake in scandal-hit PTC India
This development comes in the wake of series of resignations by the company's directors. Sushama Nath, Preeti Saran, Jayant Purushottam Gokhale and Subhash S Mundra resigned as independent directors from the board on December 5, citing corporate governance issues.
In January this year, three directors also walked out from the board of PTC Financial Services (PFS), a subsidiary of PTC India, flagging same concerns.
Also Read: Explainer: Why is PTC India Financial Services under the scanner for corporate governance?
Power Grid, NHPC, NTPC and Power Finance Corp each hold 4.05 percent stake in PTC India, BSE data shows. As PTC India has been set up by a government directive, stake sale will need the approval of the Centre, reports have said.
PTC India is down almost 25 percent in 2022.
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