PTC India, the leading provider of power trading solutions in India, continues to remain under pressure as the shares of the company slumped almost 4.5 percent on Tuesday, December 20, after reports said that public sector undertakings (PSUs) are looking to sell their stake owing to allegations of a lapse in the corporate governance in the company.
State-run Power Grid Corp of India, Power Finance Corp of India, NTPC and NHPC have decided to sell their stakes in PTC, as per reports.
However, the company has issued a clarification on the media reports.
“The management of the company has reviewed the media reports and would like to clarify that PTC is not aware of any such developments of stake sale by the promotor companies. It may be noted that all four (4) promotor companies have nominated their senior officials on the Board of PTC who have always been actively participating in the board meetings and consistently guiding the company for its future growth,” the official statement reported.
During Tuesday’s trade, the stock opened positively at a price of Rs. 81 per share closely against the previous close of Rs. 80.70 per share. However, the stock dipped during the early trade to touch an intraday low of Rs. 77 per share. It was trading at ₹78 apiece, down by 3.35 percent, at 11:30 a.m. on the NSE.
The stock touched a 52-week high of Rs. 114.90 on January 18, 2022 and a 52-week low of Rs. 67.50 on October 21, 2022, indicating that at the current level, the stock is trading 15.5 percent above its 52-week low and 32 percent below its 52-week high.
The stock has declined over 14 percent in the last five days. In the past one year, it has shown a decrease of nearly 26 percent. However, the stock has shown a positive growth of 8 percent in the last six months.
In other developments, PTC India announced on Monday that it has struck an agreement with Druk Green Power Corporation Limited, Bhutan's energy utility company, to provide 600 MW of power to the neighbouring nation during the winter season.
"Bhutan, through Druk Green Power Corporation Limited, has entered into an agreement with PTC India Ltd, for purchase of power from the Indian power market in order to meet its power requirement during the dry winter season", according to a statement from PTC India.
Rajib K Mishra, CMD, PTC India Ltd, said Bhutan, which has been exporting hydropower to India over the years, needs to import electricity to meet its increased domestic energy requirement during the winter season.
PTC India Ltd., established in 1999, is a small-cap company with a market capitalisation of ₹2,388.79 crore functioning in the power industry. The company’s subsidiaries include PTC India Financial Services Limited (PFS) and PTC Energy Limited (PEL). PTC offers a range of services to the utilities, including long and medium term sales, short-term sales and power banking arrangements.