PTC raises Rs1200cr via placements

PTC India, the country’s leading power trading company, has raised Rs 1,200 crore through the qualified institutional placement (QIP) route.The company has allotted 7.41 crore equity shares of Rs 10 each at an issue price of Rs 155 per share aggregating Rs 1,199.94 crore in favour of qualified institutional buyers (QIBs).

The company intends to use the net proceeds of the issue for enhancing the capital adequacy, capitalisation of PTC Financial Services, investment in fuel intermediation, investments in entities in the energy sector along with meeting the working capital requirements.

ABN AMRO Securities and Kotak Mahindra Capital acted as the book running lead managers (BRLMs) for the issue. Post-issue PTC India’s paid-up capital has been raised to Rs 227.41 crore from Rs 150 crore.

Earlier, PTC India’s subsidiary - PTC India Financial Services Limited (PFSL), had placed 20% each with Goldman Sachs and Macquarie India Holdings(Related Story). PFSL is a non public deposit taking NBFC and has been set up to undertake investments across the Indian energy value chain.The FIPB has already granted PFSL the approval for equity participation from Goldman Sachs and Macquarie for up to 40% of the paid up capital of PFSL.

PTC to divest 40% in its arm

PTC, formerly known as Power Trading Corporation, has raised Rs 155.74 crore by diluting 40% stake in PTC Financial Services (PFS) to Goldman Sachs and Macquarie India Holdings.

As part of the agreement, the two financial investors acquired 20% stake each at Rs 16 per share which is 60% premium to the face value of the shares and pegs the company’s valuation at Rs 389.35 crore.

The firm has already picked 26% stake in Indian Energy Exchange, the country’s first power exchange. In addition, PFS is expected to invest in greenfield and brownfield power generation assets, power transmission and distribution assets, apart from energy related infrastructure assets such as gas pipelines, fuel linked ports and electricity equipment.

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Goldman, Macquarie set to buy 40% in PTC arm for Rs 120 crore

PTC is selling a 40% stake in PTC Financial Services (PFS), the investment arm of power trading and advisory services company.The deal is expected to be in the region of Rs 120 crore.Two private equity players, Goldman Sachs and Macquaire would subscribe equal number (20% each) of shares in the company. PTC, formerly known as Power Trading Corporation, is diversifying beyond its traditional power trading business.

PFS Registered as a non-banking finance company (NBFC), one of the main activities of which would be to pick up equity in power projects and facilitate financial closure.

PFS is expected to dilute its holding further by 26% when the capital of the NBFC is raised further, reducing the holdings of PTC to below 50%.The proposal received a huge response from investors forcing it to appoint a consultant to finalise the equity partners for PFS.PTC was also engaged in talks with Blackstone, Soloman Brothers and a few other private equity players for roping them as strategic partner in PFS.

Read more in The Economic Times article.