PTC India stocks in focus as ONGC to buy PTC Energy for Rs 925 crore

Shares of PTC India are in focus on Friday after the company board okayed a proposal by state-run ONGC to acquire its wholly-owned subsidiary PTC Energy for Rs 925 crore. Smallcap PTC India, which commands a market capitalisation of Rs 4,095 crore, informed stock exchange about the development overnight.

In a BSE filing, PTC India said its board "has approved the bid submitted by M/s ONGC Ltd for acquisition of wholly owned subsidiary of PTC India Limited i.e. PTC Energy Limited (PEL) at an equity value of Rs 925 crore subject to adjustments in bid value as per the bid format."

NHPC Ltd, Power Finance Corporation Ltd, Power Grid Corporation of India Ltd and NTPC Ltd owned 4.05 per cent stake each in the power trading company as on September 30. Together, they accounted for 16.22 per cent stake in the company. FPIs including Vanguard and Fidelity owned 25.90 per cent in PTC India while Life Insurance Corporation of India Ltd (LIC) held 5.96 per cent.   

The ONGC transaction, PTC India said, is subject to the fulfilment of conditions precedent (CP), other terms & conditions -- as per the share purchase agreement, to be executed between the parties. It said a few approvals as may be required for the deal under applicable laws.

"Further, the acquisition is subject to shareholders’ approval of PTC India Limited as per applicable regulations," PTC India said.

PTC India shares have rallied 62.51 per cent this year so far. The stock settled 0.85 per cent lower at Rs 138.30 on Thursday.

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