The Hindu : PTC to tap market

Online edition of India's National Newspaper
Saturday, May 31, 2003

Business

Business

PTC to tap market

By Our Special Correspondent

NEW DELHI MAY 30. With a quantum jump in turnover to Rs. 927 crores during 2002-03, up from Rs. 364 crores in the previous year, the public sector Power Trading Corporation (PTC) is planning to tap the capital market to raise Rs. 30 crores.

"The board has given its in-principle approval to go in for an initial public offer (IPO) in the current financial year to raise Rs. 30 crores. We have already started the process and financial consultants will be appointed soon,'' T. N. Thakur, Chairman and Managing Director, told presspersons here today.

The decision has been taken soon after financial institutions such as the IDBI, IFCI, IDFC, LIC and GIC picked up stake in PTC totalling Rs. 18.50 crores, taking the total paid-up capital to Rs. 74.50 crores. The deal with the financial institutions was finalised in December last year, Mr. Thakur said, adding that besides institutions, Tata Power and Damodar Valley Corporation had also picked up equity worth Rs. 10 crores each.

For the year 2002-03, PTC's profit before tax stood at Rs. 19.53 crores, up from Rs. 7.66 crores in the previous year. The corporation has announced a 7 per cent dividend for the second consecutive year to its four promoters — National Thermal Power Corporation, Powergrid, Power Finance Corporation and National Hydroelectric Power Corporation.

During 2002-03, PTC traded over 4,178 million units of electricity. It had started trading with limited transactions during 1999-2000 (28.35 million units) and achieved 1,617 million units in 2001-02 which was its first year of sustained operations.

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