PTC India Financial fixes IPO price band

PTC India Financial Services has fixed a price band at Rs 26-28 a share for its initial public offering (IPO).

PTC India Financial Services (PFS),the non-banking financial institution promoted by PTC India,has fixed a price band at Rs 26-28 a share for its initial public offering (IPO) to be offered through 100 per cent book-building.

The company hopes to raise Rs 438 crore through the issue at higher end of price band. The company has decided to offer discount of Re 1 to the issue price to retail individual bidders,PFC Financial Services Chairman T N Thakur told reporters here.

The company proposes to come out with a public issue of 156,700,000 equity shares of face value of Rs 10 each for cash consisting of a fresh issue of 127,500,000 equity shares by PFS and an offer for sale of 29,200,000 equity shares by Macquarie India Holdings Ltd as the selling shareholder.

The issue will open for subscription on March 16 and close on March 18.

PTC Financial will receive Rs 357 crore,while Macquarie India will receive Rs 81.76 crore from the offer for sale,Thakur said.

Post IPO,PTC’s holding will come down to 60 per cent from the present 77.60 per cent in the company’s equity. The holding of GS Strategic Investments Limited (an affiliate of The Goldman Sachs Group,Inc) and Macquarie India Holdings Limited (an affiliate of The Macquarie Group) will come down from 11.20 per cent to 8.1 per cent and 3.5 per cent,respectively.

The company intends to utilise the proceeds for augmenting capital base to meet future capital requirements arising out of growth in business.

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PTC Financial Services was promoted to make investments in companies engaged in power generation,equipment supply and fuel source projects.

The company is currently focused primarily on power generation projects in India,but also provides fee-based syndication and advisory services as well as carbon credit financing against certified emissions reduction (CER).

The shares will be listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).