Calcutta, May 17: Financial institutions like IDBI, IFCI, LIC and GIC have evinced interest in increasing their stake in Power Trading Corporation (PTC), a company specialising in the purchase and sale of electricity.
At present, the institutions hold a combined stake of 18.5 per cent in PTC; the Damodar Valley Corporation and Tata Power Company control 10 per cent each.
The corporation’s promoters — National Thermal Power Corporation (NTPC), Power Grid Corporation of India (PGCIL), Power Finance Corporation (PFC) and National Hydroelectric Power Corporation — together own 36 per cent. The remaining equity — 25.5 per cent — will be raised through a public offer of Rs 25.5 crore by June.
The firm started with an authorised capital of Rs 150 crore when it was incorporated in 1999. It had a paid-up equity capital of Rs 24 crore, of which Rs 12 crore came from PGCIL; NTPC and PFC chipped in with Rs 6 crore each.
“Due to an increase in volumes and the corporation’s improved financial position, FIs, insurance companies, project developers, private utilities and Central government firms are interested in buying a part of the corporation’s equity,” sources added.
Power Trading Corp plans to increase its paid-up capital base to Rs 100 crore by June 2003 and to Rs 750 crore over the next few years. Its 2002-03 turnover is expected to be Rs 850 crore, more than double the Rs 364 crore in 2001-02.
PTC sources said all financial institutions are keen to enhance their stake in the company. “They have already approached us with their proposal. We are currently working out the nitty-gritty of the public offer. Once it is through, we will examine their proposals.”