PTC India experienced a notable surge in its stock price, witnessing a remarkable 9% increase on the morning of October 20. This surge was in response to the company’s green signal for ONGC’s bid to acquire its subsidiary, PTC Energy, at a substantial amount of Rs 925 crore.
PTC India’s board of directors granted their approval for the acquisition, contingent upon the necessary adjustments to the bid value as outlined in the bid format. In a disclosure made to the stock exchanges on October 19, the company revealed its intention to seek shareholders’ consent for the sale of PTC Energy to ONGC.
Established in 2008, PTC India had founded PTC Energy with the objective of building a robust asset base. Over the years, PTC Energy engaged in diverse energy-related activities, including generation, supply, distribution, transmission, import/export of coal, and the conversion of coal or other fuels into electricity. Additionally, the subsidiary offered valuable consultancy services within the energy sector.
By 12:33 pm, PTC India’s stock was actively trading at Rs 146.75 on the Bombay Stock Exchange (BSE), marking an impressive surge of 5.99% from the previous day’s closing price.
In the first quarter of the current financial year, PTC India saw a 14 percent year-on-year increase in revenue, totaling Rs 4,569 crore. The company’s net profit also rose by 22 percent YoY to Rs 90 crore. However, its expenditure increased by 14 percent in Q1FY24. PTC India operates in long-term and short-term trading of power, holding power purchase agreements with independent producers both in India and abroad.
