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PFS eyes Rs 500 million from 16% stake sale in Indian Energy Exchange

According to reports,  Infrastructure lender PTC India Financial Services (PFS) expects to garner as much as Rs 50 crore from sale of over 16 per cent stake in the country”s largest power bourse, Indian Energy Exchange (IEX).

PFS, which currently holds 21.12 per cent stake in the power exchange, would probably divest more than 16 per cent to one or more overseas players, sources told PTI.

On a conservative basis, the divestment of over 16 per cent stake is expected to mop up about Rs 45 to 50 crore. The sale is expected to be complete by end of December, they added. The promoters of IEX include diversified group Financial Technologies (India) Ltd and PFS, a group company of leading power trading solutions provider PTC India.

PFS has already approached the Foreign Investment Promotion Board (FIPB) for the planned stake divestment. The proposed stake sale is part of efforts to comply with the regulatory requirements. As per the Central Electricity Regulatory Commission (CERC) norms, an entity trading in electricity cannot have more than five per cent in a power exchange.

Without divulging the names of prospective buyers, sources said the share sale by PFS would also help allay concerns of the investors about the overall power sector and the power exchange business, in particular. Last fiscal, PFS had sold 4.88 per cent stake in IEX at a price of Rs 115.41 per share and brought down its shareholding to 21.12 per cent. The stake sale and fetched PFS about Rs 14 crore at that time.

Other key shareholders of IEX include Adani Enterprises, Infrastructure Development Finance Company (IDFC), Lanco Infratech, Reliance Energy, Rural Electrification Corporation (REC) and Tata Power Company.
A non-banking finance company, PFS has sanctioned loans worth Rs 2,255 crore so far this fiscal. The company posted a 11 per cent increase in profit after tax at Rs 22.64 crore for the three months ended September.

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