Shares of PTC India dipped nearly 5 percent on Thursday, December 8, after four out of the six non-executive independent directors on the board of PTC India resigned in the last two days over governance issues.
On Tuesday, BSE chairman S. S. Mundra became the most high-profile independent director to step down from the board of the state-run power trading company, reported Mint.
Furthermore, former secretary in the finance ministry Sushma Nath, former principal chief commissioner of income tax, Mumbai, Devendra Swaroop Saksena and Jayant Purushottam Gokhale, founder of Gokhale & Sathe, also resigned from the board of PTC’s controversy-hit subsidiary PTC India Financial Services (PFS).
During Thursday's trade, the stock opened on a negative note at Rs. 89.50 per share against the previous close of Rs. 90.30 per share and plunged further to hit an intraday low of Rs. 85.80. At 12:25 p.m., the stock was trading at around ₹85.80 apiece, down by 4.9% on the BSE.
The stock touched a 52-week-high of Rs. 116.40 on December 13, 2021 and a 52-week-low of Rs. 67.50 on October 21, 2022, indicating that at the current level, the stock is trading over 27 percent above its 52-week low and 26.3 percent below its 52 week high.
On the technical front, the stock has grown over 12 percent in the last one month. Moreover, in the past six months, it has given a positive return of 4.5 percent. However, the stock has declined almost 25 percent in the last one year.
On Wednesday, the government-owned power company PTC India reported a 29.2 percent decrease in its consolidated net profit for the quarter ending in September, closing in at 138.23 crore. The company generated a net profit of 195.48 crore for the same period in the previous fiscal year.
In January 2022, three of PFS's independent directors resigned from the board, citing major corporate governance difficulties. The SEBI then ordered PFS to first address the corporate governance challenges at the company and prohibited PFS from publishing quarterly results until these problems were resolved.
PTC India Limited (PTC) is an India-based company engaged in operating Power and Investment segments. The Company’s subsidiaries include PTC India Financial Services Limited (PFS) and PTC Energy Limited (PEL).
PFS engages with enterprises with projects in the power industry and associated fields along the whole value chain of energy by making investments and offering financing solutions.