PTC India to be debt free post divestment

New Delhi : Power trading solution provider PTC India would soon achieve a debt-free status following the divestment of its arm, PTC Energy, to ONGC for an enterprise value of Rs 2,021 crore, according to a top official.

PTC India in October announced that the upstream firm ONGC had emerged as the successful bidder for acquiring its 100 per cent stake in PTC Energy for an enterprise value of Rs 2,021 crore. In an interview, PTC India Chairman and Managing Director Rajib K Mishra said, “With the transfer of PTC Energy’s assets, the company would become virtually debt-free.” Mishra said the enterprise value of PTC Energy includes Rs 925 crore bid of the ONGC as well as over Rs 1,100 crore debt component which will be transferred to the oil company after the transaction is complete. PTC India’s outstandings have reduced drastically due to the Late Payment Surcharge scheme and it is now emerging as a company that does not take loans to meet its working capital needs, he pointed out. He further said that PTC India is also coming out of non-core business and is focussing on becoming an asset-light firm.