PTC India Shares Rise 5% As Adani, Tata, JSW, Greenco Approach For Stake In Company
January 20, 2023: New Delhi: Shares of power trading company PTC India rose 5 percent after news emerged that billionaire Gautam Adani-led Adani Group has been approached to analyze its interest in buying strategic stakes in Tata Power, Greenco, JSW Energy. Company
Shares of PTC India rose 4.95 percent on Wednesday to Rs. 100.70. On Tuesday too, the stock rose 5 percent to Rs. was settled at 95.90.
The company has been mired in controversy over governance issues at its financial services subsidiary, which has forced five public sector undertakings, including four promoter companies of PTC India, to sell their stakes.
PTC India has NTPC, NHPC, Power Finance Corp and Power Grid Corp of India as its promoters, which hold around 16 per cent stake in the company.
Damodar Valley Corp, which owns 3.3 per cent stake in PTC India, also wants to divest its shareholding. PTC India, which also counts Life Insurance Corporation of India, has a market capitalization of Rs. 2,464 crore ($297.81 million).
Last month, the controversy-ridden company denied allegations of mismanagement and non-compliance leveled by its outgoing independent directors.
The state-owned company said none of the board members raised the issue in the last six months and only mentioned it in resignation letters.
Earlier this month, Bloomberg News reported that a stake in the state-backed electricity trader for sale was attracting early interest from potential suitors, including Gautam Adani, Asia’s richest man.
The current plan would take the total stake on offer to the potential strategic investor at around 20 percent, the Economic Times said, citing people with knowledge of the development. Meanwhile, India’s largest insurer LIC is not planning to sell its 5.96 percent stake, they added.
ICICI Securities has been brought on board to identify a buyer for the stake sale and has approached potential buyers. People familiar with the matter shared that ICICI Securities may seek interest from more entities.
The promoters and Damodar Valley will appoint an internal committee to arrive at a floor price for sale of shares before proceeding with each process. It may take around 4-6 weeks to finalize the floor price.
PTC India, on the other hand, informed the bourses last week on January 12 that it was “not aware of any such sale of stake by the promoter companies”.
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