PTC India Share Price: PTC India Receives Shareholder Consent to Sell 100% Stake in Energy Sector

New Delhi: Power trading solutions provider PTC India on Thursday received shareholder approval for sale of 100 per cent stake in PTC Energy to state-owned ONGC Ltd for an enterprise value of Rs 2021 crore. At the extraordinary shareholders’ meeting held, a whopping 93.61% voted in favor of a special resolution to approve the proposal to cancel (through sale, transfer or otherwise) 100% investment in its wholly-owned subsidiary PTC Energy Ltd. According to a regulatory filing on Thursday.

Last October, PTC India announced that upstream company ONGC had emerged as a successful bidder to acquire 100% stake in PTC Energy at an enterprise value of Rs 2,021 crore.

“Transferring PTC Energy’s assets will make the company virtually debt-free,” PTC India Chairman and Managing Director Rajib K Mishra told PTI in November 2023.

Mishra also said PTC Energy’s enterprise value includes ONGC’s Rs 925 crore bid and a debt component of over Rs 1,100 crore that will be transferred to the oil company after the deal is completed.

The sale of PTC Energy is part of a strategy to exit non-core businesses.

PTC India Ltd, an initiative of the Government of India, has maintained a leading position in power trading since its inception. Trading activity includes long-term trading of power generated from large-scale power projects, including renewable energy, and short-term trading resulting from supply and demand mismatches.

Shareholders also approved the proposal to appoint Manoj Kumar Jhawar as Director (Commercial and Operations) of PTC India and Rajiv Kumar Rohilla as Non-Executive Candidate Director on the Board of Directors of the company.