PTC India Financial to float energy sector-focused PE fund

PTC India Financial Services Ltd (PFS) has approved a plan to float an asset management company (AMC) as part of a move to expand its roster of financial services for the energy sector in the country, as per a disclosure by the firm.

This AMC will also begin with launching a private equity fund for the power sector and will have a corpus of up to Rs 300 crore ($50 million), the company’s chief RM Malla told The Hindu Business Line. 

Of the total, nearly 20 per cent of the initial corpus of the proposed PE fund would be pooled in by PTC India Financial Services and its promoter company PTC India Limited, Malla told the newspaper. The company will invest seed money (as equity) from the proposed PE fund in various energy companies, he added.

Without elaborating, he also said a West Asian group has expressed interest to be part of this PE fund.

PTC India Financial Services works as special purpose investment vehicle and provides financial services to entities in energy value chain – investing in equity or extending debt to power projects in generation, transmission and distribution, fuel sources, fuel-related infrastructure like gas pipelines, LNG terminals, ports and equipment manufacturers, etc.

A subsidiary of PTC India, the firm had previously raised funding from investment arms of Goldman Sachs and Macquarie in 2008 and went public in late 2010.

For the year ended March 31, 2014, the non-banking finance company's net profit almost doubled to Rs 208 crore from Rs 104 crore registered in the previous fiscal.

(Edited by Joby Puthuparampil Johnson)

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