PTC Fin IPO in mid-March; to raise Rs 800 cr

NEW DELHI: PTC India Financial Services, an arm of the state-run PTC India, today said it has received a nod from market regulator Sebi for an initial public offering (IPO) to raise an estimated Rs 800 crore and plan to come out with it by mid-March.

"We have received final comment from Sebi. We plan to tap the capital market by mid-March with the IPO," PTC India CMD Tantra Narayan Thakur told PTI.

According to market sources, the company could raise between Rs 500-800 crore through the IPO.

PTC India Financial Services (PFS) has already filed the draft prospectus for the IPO with the Securities and Exchange Board of India (Sebi) in December, 2010.

PTC Financial Services' present equity capital is Rs 600 crore, of which 77 per cent is held by PTC India and 11.5 per cent each by Goldman Sachs and Macquarie.

While PFS would offer 12.75 crore fresh shares in the IPO, Macquarie Group will dilute 2.92 per cent of its stake in the company.

Post IPO, the stake of PTC would come down to 60 per cent, Goldman Sachs to 8.7 per cent and Macquarie to 3.5 per cent.

Formed in 2008-09 for providing equity support to power projects in the country, the company also invests in renewable energy projects including wind farms and biomass projects.

"PFS is on a steep growth path and the growing power requirements in the country will help the company grow further," PFS Director Ashok Haldia said.

For the six months ended September, 2010, PFS had net profit of Rs 25.5 crore, while total income was Rs 53.6 crore.

Besides, PFS is currently in the process of raising about Rs 100 crore through the issue of tax-free infrastructure bonds. The issue, which opened on February 9, closes on March 14.

As per the terms of the issue, the company will raise Rs 30 crore, with an option to retain over-subscription up to an additional Rs 70 crore.