PTC To Become First Power Trading Co To Be Listed

New Delhi, Feb 26: | Updated: Feb 27 2004, 05:30am hrs
Power Trading Corporation (PTC) which has announced its IPO at a price band of Rs 14-16 would be the first power trading company to be listed on the bourses, if the issue goes through. The issue of 5.8 crore equity shares of Rs 10 each would remain open for subscription between March 1 and 8. The issue for 39 per cent shareholding in the company is being lead managed by SBI Capital Markets.

The company is in the business of trading of power. According to the companys chairman and managing director T N Thakur, We buy power from the power surplus regions, add our margins and sell the power to places which have power deficit.

He added that the company has developed various types of products including short-term and medium-term products which range from supply of power for one hour to one year, time of the day trading and as and when available.

There can be power deficit even in the power surplus areas as times and vise-versa. Power supply situation changes depending on the time of the day and seasons in different regions. Thus there is tremendous scope in power trading as the sector has been deregulated, Mr Thakur said.

He added that while our customers, the state electricity boards, are not very credit-worthy but we have not had any problems in getting the payments so far. Our people actively track the power situation at various places and pass on the information to our marketing people who then contact the concerned boards, Mr Thakur said. Issue proceeds would be used to augment the working capital of the company. PTC is promoted by National Hydroelectric Power Corporation (NHCP), National Thermal Power Corporation (NTPC), Power Finance Corporation (PFC) and Powergrid Corporation of India which would continue to hold 8 per cent each in the post-issue shareholding of the company.