State-backed electricity trader PTC India Limited is attracting interest from several Indian conglomerates including Adani Group in a stake sale of possibly up to 16 per cent, Bloomberg has reported.
Adani Group, helmed by Asia’s richest person Gautam Adani, is among the several possible bidders who are reviewing preliminary documents related to PTC’s business, people familiar with the matter reportedly said.
They added that bids are due as soon as the end of this month. In December 2022, ICICI Securities was hired as an advisory firm for the stake sale after state-owned Power Grid Corporation of India Ltd, Power Finance Corporation of India Ltd (PFC), NTPC Ltd and NHPC Ltd decided to sell their stakes in PTC India Ltd, as reported by Mint. They collectively own a 16.2 per cent stake.
It was NTPC who wished to sell their stake initially before the others joined in following a suggestion from the Ministry of Power. The sale is due to several instances of alleged corporate misgovernance, as per multiple reports.
Adani Group has a strong hold over India’s energy value chain, with the fast growth of Adani Power and Adani Transmission. The conglomerate is involved in coal mining, energy trading, power transmission and distribution services.
“As a part of the company’s business growth strategy, we continue to evaluate various viable options," an Adani Group representative said in an emailed response to Bloomberg. They added that the conglomerate does not comment on speculations.
A representative from PTC, however, said that the firm is not aware of a stake sale by its promoter companies, the report added.
