PTC India (formerly Power Trading Corporation of India) has revived plans to sell its controlling stake in its NBFC arm PTC India Financial Services (PFS), 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.
PFS stock skyrocketed by a whopping 10% on Sensex as it has clocked the upper circuit limit of Rs. 15.07 per piece on the index. The parent company stock has also advanced by over 6% on Sensex with a high of Rs. 51.25 per piece before correcting.
PTC India Financial Services is 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 firm offers debt financing, fee-based services and also equity investments for both greenfield and brownfield projects.
PTS has been bleeding its parent company out with ever-increasing debt, decreasing net profit year-on-year and the recent NBFC crisis has put a huge dent on PTC India’s balance sheet. The management of the company feels that the private sector is better equipped to deal with such problems. The company had announced its plans to divest the financial services arm in August last year. PTC India currently holds a 64.99 per cent stake in PTC India Financial Services and at current market capitalisation the value of the majority stake is around Rs. 572 crore
“Subsequent to delays on account of the ongoing Covid-19 pandemic, requisite internal approvals have been received to reinitiate the process of exploring opportunities for monetizing the company’s investment in PFS. In this behalf, it has been decided to undertake steps for inviting potential purchaser(s)/ investor(s) to submit their respective interest for the same,” the company statement said.
The last day of submission of interest by a bidder is July 31.