Blackstone & Goldman Sachs may pick up 49% in PTC Financial

NEW DELHI: Private equity major Blackstone, Saloman Brothers and Goldman Sachs are talking to PTC — a listed company engaged in power trading, coal trading and advisory services — to pick 49% stake in its finance arm PTC Financial Services (PFS). The deal is expected to be in the region of Rs 150 crore. PTC, formerly known as Power Trading Corporation, is diversifying beyond its traditional power trading business.

Registered as a non-banking finance company (NBFC), PFS was set-up as a separate investment firm last year and is currently a wholly-owned unit of PTC. The NBFC will be providing financial services for power generation projects. One of the main activities of the firm would be to pick equity in power projects.

According to sources, Blackstone, Saloman Brothers and Goldman Sachs are some of the international funds that have evinced interest in picking strategic stake in the company. It is learnt that more than one investor are going to be roped in for the venture.

When contacted by ET, PTC India chairman and managing director TN Thakur said, “We are talking to various people for equity partnership. However, the specific investors have not been finalised yet.”

PTC India is in the process of raising Rs 1,200 crore. While a major part of the fund being raised would be used to service power purchase agreements which have been signed by the company, it would also be used to finance PFS.

The proposal to raise funds has been cleared by the board and now awaiting shareholder approval. This is likely to be taken up at the AGM in September. PTC promoters are four government led power sector firms NHPC, NTPC, PFC and Power Grid.

The entry into financial services area would be yet another business diversification for PTC. Overtime, the company has moved from being a pure power trader to other areas including coal trading and advisory services related to the power sector.

While 80% of PTC’s revenues come from short term power trading, the company wants to bring it down. The idea is to make project intermediation, project financing, long term power purchase agreements, consultancy services and coal trading focus areas so that they contribute more to its revenue and profit than short term power trading business.