As a prelude to its own private placement of shares to raise Rs 1,200 crore, PTC India, the former Power Trading Corp, has divested a 40 per cent stake in its wholly owned subsidiary PTC India Financial Services Ltd (PFSL), a non-banking finance company, to Goldman Sachs and Macquarie India for Rs 150 crore.
Under the agreement, PFSL has issued 4.86 crore equity shares each to Goldman Sachs and Macquarie India at the rate of Rs 16 per share including a premium of Rs 6 per share aggregating to Rs 77.76 crore, company sources said. PTC India will continue to own 14.6 crore equity shares in PFSL, which will be equal to 60 per cent of the enhanced paid-up capital of Rs 243.2 core. At this rate the company is being valued at Rs 390 crore.
PFSL will work as the investment vehicle for PTC and will take exposures in power generation, and distribution companies. It has already taken a 26 per cent stake in the Indian Energy Exchange, which is promoted by Financial Technologies group.
"Since PTC India cannot leverage its owned balance sheet, it would use PFS as an investment vehicle which will work as a non-banking finance company. The company will raise fresh resources from the market as debt or equity in case it has fresh fund requirements," a source in the company said.
In addition, PTC has already completed a roadshow for the private placement to raise Rs 1,200 crore. Sources in the company said that the placement is expected to be completed by the end of this month. Once the private placement is completed, it would result in a dilution of government stakes held through four public sector undertakings in PTC India to below 26 per cent, down from the current 32 per cent.
The current market capitalisation of PTC is around Rs 2,350 crore. In case the private placement is done at the current market price, PTC will have to issue around 7.5 crore fresh equity shares. As a result the paid-up capital of the company will increase to Rs 225 crore.