The shares of PTC India Ltd hit an upper circuit of 5 percent at Rs 87.40 levels on Monday’s session. The shares rallied after word hit the street that Gautam Adani is eyeing to buy a stake in the small-cap power trading company, Bloomberg reported.
As per reports, the deal would help the Adani group to strengthen its grip on the Indian energy value chain. The company already has a strong presence in the coal mining and electricity transmission business through its group company, Adani Transmission Ltd.
Its promoters, NTPC, NHPC, Power Grid Corp, and Power Finance Corp are working with an advisor to weigh selling their stakes of around 4 percent each. Bids are due as soon as the end of this month, the report said.
The promoters announced the stake sale after it was alleged that the power trading company was not adhering to the corporate governance norms. This led to a series of resignations by the company’s directors.
On a yearly basis, they have shed approximately 21 percent of their value, most of which happened during the last month after the news broke. The scrip reached its 52-week high of Rs 114.90 in January 2022. Currently, it is 23 percent away from those levels.
PTC India is a pioneer in starting a power market in India and undertakes trading activities, which include long-term trading of power generated from large power projects, as well as short-term trading.
Written by Anoushka Roy
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