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Power trading solutions provider PTC India on Thursday received shareholders approval for selling 100 per cent equity stake in its arm PTC Energy to state-owned ONGC Ltd for an enterprise value of Rs 2,021 crore.
As much as 93.61 per cent of votes were in favour of the special resolution to approve the proposal for 100 per cent disinvestment (by way of sale, transfer or otherwise) in its wholly-owned subsidiary PTC Energy Ltd, at an extraordinary general meeting held on Thursday, a regulatory filing said.
In October, PTC India announced that the upstream firm ONGC had emerged as the successful bidder for acquiring 100 per cent stake in PTC Energy for an enterprise value of Rs 2,021 crore.
In November 2023, PTC India Chairman and Managing Director Rajib K Mishra had told PTI in an interview, "With the transfer of PTC Energy's assets, the company would become virtually debt-free."
Mishra had also informed that the enterprise value of PTC Energy includes Rs 925 crore bid of ONGC as well as over Rs 1,100 crore debt component which will be transferred to the oil company after the transaction is complete.
The divestment of PTC Energy is part of the strategy to exit the non-core business.
PTC India Ltd, a Government of India initiative, has maintained its leadership position in power trading since its inception.
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The trading activities involve long-term trading of power generated from large power projects, including renewables as well as short-term trading arising as a result of supply and demand mismatches.
Shareholders have also approved the proposal to appoint Manoj Kumar Jhawar as Director (Commercial and Operation) of PTC India and Rajiv Kumar Rohilla as Non-Executive Nominee Director on the company's board.
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