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
FT, PTC India to launch power exchange

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.

FT, PTC India to launch power exchange

Financial Technologies India and PTC India have received approval from the central electricity regulatory commission to set up India's first national level power exchange, Indian Energy Exchange Ltd for trading electricity.Indian Energy Exchange will be a pan-India neutral and transparent electronic demutualized exchange for efficient price discovery in the electricity market.

PTC India has consented to take 26 per cent stake and corporates like Tata Power, Reliance Energy, Rural Electrification Corporation, Adani Enterprises and IDEC will also hold stake in the consortium. The company will invite strategic partners to join the power exchange.

The power exchange will benefit market participants such as the generators, distribution licensees, open access users, trading licensees, industrial consumers, system operators and bankers in many ways.Currently, short term trading constitutes only 3 per cent of the total energy market as against over 15 per cent globally.

Read more in The Economic Times article.

Tata Power offloads 4.2% in PTC for Rs 50 crore

Tata Power has sold 4.2% in PTC India in the open market for about Rs 50 crore. Tata group’s power generation arm was one of the early investors in PTC, formerly Power Trading Corporation. The partial stake sale comes at a time when PTC has announced it will raise Rs 1,200 crore from the market to fund expansion plans. Existing investors would be required to pump in more money or see their stake come down.

As per the stock exchange disclosures, Tata Power held 10.47% till March 2007. The company diluted its holding marginally during the April-June quarter. Thereafter, it sold an additional 3.35% in the open market over the past six weeks. Last week, Amulya Charan, a Tata Power nominee on the PTC India board had resigned. As per the average market price of TPC share during the time of the sale, Tata Power is expected to have fetched close to Rs 50 crore out of which about Rs 40-42 crore would have been generated in the current quarter.

Tata Power still holds 6.3% equity in PTC, valued at about Rs 70 crore. Tata Power had invested Rs 17.6 crore to acquire the stake in PTC over a period of time.

Just before the initial public offering (IPO) of PTC in March 2004, Tata Power was the single largest stake holder in the company having about 16% stake.Tata Power’s holding came down after the IPO to about 10% and till June 2007 it remained the single largest equity holder.

PTC India board nod to raising Rs 1,200cr

The board of directors of PTC India have approved a proposal raise Rs 1,200 crore for expansion of the company's existing business.

According to a release issued by PTC to the BSE today, the board after agreeing have recommeded the matter to the next AGM for necessary enhancement of equity base.

ITC Infotech could go public

ITC Infotech, an IT services company and fully-owned subsidiary of ITC, is planning to go public. Although no date has been finalised as to when the company is planning to hit the capital market, Y C Deveshwar, chairman, ITC said the company may opt for the bourses `at some point of time'.

ITC Infotech is a $64 million company with a headcount of over 4,200 employees. The tier-II firm competes with the likes of the global service providers like HP, IBM and Accenture and also tier-one Indian players for enterprise system integration solutions, infrastructure and testing services projects. Some of its clients include British American Tobacco, Abbey National Bank, Finnair, DHL, PTC and Unilever. Around five per cent of the company’s revenues come from ITC.

Read more in The Business Standard article.