Power Trading Corporation IPO in Feb

Power Trading Corporation will enter the capital market next month with its initial public offer to enhance capital by Rs 58.5 crore (Rs 585 million).

The draft prospectus for the issue was filed last week with the Securities and Exchange Board of India.

PTC has appointed SBI Caps and Enam Financial Consultants as the book-running lead managers and KJMC Global Market as co-book running lead manager for the IPO, T N Thakur, CMD of PTC, told reporters in New Delhi.

At present PTC has paid up capital of Rs 91.5 crore (Rs 915 million) which would go up to Rs 150 crore (Rs 1,500 million) after the IPO. The authorised capital of PTC is Rs 750 crore (Rs 7,500 million).

PTC registered a turnover of Rs 998 crore (Rs 9,980 million) in the first six months of current fiscal as against Rs 900 crore (Rs 9,000) in the last full financial year.

Asked about the premium on the IPO, Thakur said the lead managers have yet to do the pre-market survey, but emphasised that PTC would be "investor friendly."

PTC is promoted by four central power PSUs -- PGCIL, NTPC, NHPC and PFC -- which own eight per cent stake each in the trading company along with financial institutions like IDBI, IDFC, IFCI, LIC and GIC holding combined stake of Rs 18.5 crore (Rs 185 million).

Tata Power and Damodar Valley Corporation have also stake of Rs 15 crore (Rs 150 million) and Rs 10 crore (Rs 100 million), respectively in the company.

Earlier, International Finance Corporation had expressed interest in picking up 10 per cent stake for Rs 15 crore (Rs 150 million) in PTC but the deal could not materialise due to IFC's policy to pick up stake only in private companies.