Power Finance Corporation (PFC) of India decidced to form subsidiary to focus on renewable energy projects and their funding in November of 2010.
PTC India Financial Services listed on the Indian stock markets in April this year. Earlier, PFS was in talks to tie up with two foreign PE players and launch a $100 million fund.
As we had mentioned in July last year, PTC India, was mulling floating two private equity funds as part of efforts to strengthen its financing capabilities. PTC India earlier this year was in talks with a sovereign wealth fund for setting up a private equity fund, which is likely to have an initial capital of about $ 100 million.
Power Finance Corporation Ltd (PFC) in May this year, said it will raise $250 million through external commercial borrowing. PFC is also looking at expanding its portfolio by funding coal mining projects overseas.
Reports indicate that, PFC has selected four partners – Tata Capital, Religare, Reliance Capital and Edelweiss (in order of merit) – to join hands for a proposed $1 billion private equity fund.
Discussions will start with Tata Capital first and if that doesn’t work out, PFC will move to the second player. The fund is likely to have a start-up capital of $300 million to be utilised for funding power projects. PFC will hold 49 per cent in the fund, while the partner will have 51 per cent stake.