TCS to sell stake in power bourse

MUMBAI: TCS will part with a significant portion of its 50% stake in National Power Exchange (NPE) to a group of investors, a person familiar with the development said.

A mix of financial institutional investors and private power producers have shown interest in being a part of the commodity exchange , which was floated late last year in partnership with three government enterprises . National Hydroelectric Power Corporation, Power Finance Corporation and National Thermal Corporation equally hold the remaining 50% stake.

NPE would be restructured in a fashion where TCS's holding would considerably reduce to 16.66% through fresh equity. The final shareholding would be such that 50% of NPE would be held by government entities including NHPC, PFC and NTPC and 50% to be held by private companies, including TCS. ������ The process has already started. We hope to close the transaction in the next few months,'' said a source. He, however, declined to confirm the names of the new investors as the deal is at preliminary stage. The names doing the rounds include GVK, IDBI and IL&FS , among others.

NPE is one of the rare cases where the software vendor has invested in a nonrelated business venture (read: client). Tata Power, too holds a stake in Indian Energy Exchange ��� India's first power exchange.