PTC India, the nation’s top power trading company, has put two of its non-core businesses on the block -- lender PTC India Financial Services and renewable energy firm PTC Energy -- and is in negotiations with suitors, two people involved in the process told The Economic Times.
“The company is looking to raise up to Rs 2,000 crore ($281.4 million at current exchange rate),” said one of the persons.
PTC India owns 65% of listed PTC India Financial Services. It has sought shareholders’ approval to dilute up to a 26% stake in the financial services firm from the current 65%, the report said.
Wholly-owned subsidiary PTC Energy has a portfolio of 289 megawatts (MW).
Meanwhile, e-commerce firm Amazon’s plan to buy up to a 26% stake in Reliance Retail has likely fallen through due to high valuation, two persons in the know told The Economic Times.
They said that Mukesh Ambani-led Reliance Industries Ltd’s retail business is valued at up to Rs 3 trillion. In line with the revised foreign direct investment (FDI) norms for e-commerce that came into effect in February, Amazon wanted a stake not more than 26% so that Reliance Retail could become a seller on its Indian e-commerce marketplace. Previously, Reliance Retail’s negotiations with China’s Alibaba Group for a stake sale had fallen through due to differences over valuation, The Economic Times had reported.
Amazon has now started exploratory talks with Landmark group’s value fashion retail chain, Max, for acquiring a similar minority stake in it, the persons said.
The government had earlier this year tightened norms for FDI in e-commerce that prohibited the marketplace entity from owning more than 26% in a seller.