Power trading solutions provider PTC India has announced on Thursday its decision to divest its entire 100% equity stake in its subsidiary, PTC Energy, to state-owned upstream company ONGC. The transaction, valued at Rs 2,021 crore, signifies ONGC’s successful all-cash bid of Rs 925 crore for acquiring the equity stake.
PTC India disclosed in a filing to the Bombay Stock Exchange (BSE) that the deal’s enterprise value, which encompasses outstanding debt and equity value, amounts to Rs 2,021 crores, subject to adjustments upon the transaction’s closure.
PTC Energy Ltd (PEL), established in August 2008 as a subsidiary of PTC India, has played a significant role in India’s growing energy sector through asset-based businesses. The company has notably commissioned seven wind projects with a cumulative capacity of 288.8 MW in Madhya Pradesh, Andhra Pradesh, and Karnataka.
The transaction’s completion remains contingent upon Conditions Precedent (CP), adherence to the terms and conditions defined in the share purchase agreement between the parties, and approvals mandated by applicable laws. Additionally, the acquisition is subject to the approval of shareholders of PTC India Limited in accordance with relevant regulations.
This move signifies ONGC’s strategic interest in expanding its presence in the renewable energy sector, tapping into the potential for growth and sustainability in India’s evolving energy landscape.
Last week, PTC India indicated in an official exchange filing that it has approved ONGC Ltd.’s proposal to acquire its subsidiary, PTC Energy Ltd.
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