PTC raises Rs 1,200 cr through QIP

NEW DELHI: PTC India has raised Rs 1,200 crore through a qualified institutional placement (QIP). The company, formerly Power Trading Corporation, allotted 7.41 crore equity shares of Rs 10 each at an issue price of Rs 155 per share, aggregating Rs 1,199.94 crore, in favour of institutional buyers LIC and Morgan Stanley, among others. The PTC scrip dropped 1.4% to close at Rs 148.6 on the Bombay Stock Exchange on Wednesday.

The four public sector promoters of the company, NTPC, NHPC, Power Finance Corporation and Power Grid, who held 8% stake each before the QIP issue, now cumulatively hold 21% equity stake . Tata Power, which held 10% in PTC after its initial public offering few years ago, has gradually offloaded shares and has more than halved its shareholding.

The funds will be used to enhance the capital adequacy, capitalisation of PTC Financial Services — its financial services arm — apart from, investment in fuel intermediation, investments in entities in the energy sector along with meeting the working capital requirements. After this issue, PTC India’s paid-up capital has raised to Rs 227.41 crore from Rs 150 crore earlier.