PTC India, the country’s leading power trading company, is planning to foray into the private equity business with an initial investment of more than Rs 500 crore. The PE firm will in turn raise funds from other institutional investors, domestic and overseas.
The company is contemplating to raise up to Rs 1,500 crore through various routes, which will be partly used to start the PE fund. Of this, Rs 1,200 crore will be raised by PTC through private placement of non convertible debentures (NCDs) and warrants. Another Rs 300 crore will be mopped up by PTC Finance Services (PFS), the financial arm of PTC India.
PFS is a non-banking financial services company, in which Goldman Sachs and Macquarie India Holdings had picked up 40 per cent stake in January 2008 for Rs 156 crore. The board of PFS is slated to meet early next week to decide the modality of raising fresh funds