Two of PTC India’s subsidiaries – the listed energy sector lender PTC India Financial Services and the unlisted renewable power generator PTC Energy – may raise equity from outside sources in the current financial year, according to an official familiar with the development.
“We have so far invested Rs 650 crore equity in PTC Energy and Rs 750 crores in PTC Financial as equity,” the official with the parent company told Moneycontrol. “Now it is up to the two to raise equity to fund their growth plans. It’s not that we don’t want to invest more equity and won’t invest in the two, but we feel the two companies should now also look at outside sources.”
While PTC India wholly owns PTC Energy, it has a 64.99 percent stake in PTC India Financial, having increased its stake during the last concluded quarter from 60 percent at a cost of Rs. 308.77 crore.
He said the PTC India board was willing to dilute up to 26 percent stake in PTC Energy.
“PTC India won’t sell any stake but it is willing to go for dilution,” the official said. “Now it is up to PTC Energy who they want to get. They need money to grow their business. The option of an initial public offering by PTC Energy will come much later.”
He said that PTC’s own networth was Rs 3,000 crore and the combined equity investment in the two subsidiaries came at Rs 1,400 crore. “These are substantial investments. We would want someone who is credible. This could be a sovereign wealth fund or a pension fund,” the official said.
PTC Energy is now a 300 MW wind power generating company with plans to add another 200 MW-250 MW in the current financial year. The unlisted subsidiary has a debt of Rs. 1,640 crore on its books.
“Currently, we have only wind power capacity. In future, we would like to have both wind and solar with a long-term plan of having a total installed renewable power capacity of 2,000 MW by 2021,” an official with PTC Energy told Moneycontrol.
The official said the company would set up capacities only in those states where it was able to sign power purchase agreements prior to undertaking any work on the project.