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NTPC’s Bid to Acquire PTC India Co-Promoter Stakes Stalled

NTPC Ltd.’s attempt to buy out the stakes of its co-promoters in PTC India Ltd. has hit a roadblock after NHPC Ltd. refused to divest its holding. Earlier, NHPC, India’s largest hydropower generator, had shelved its own buyout plan, citing that power trading was not its core business. However, it has now decided to retain its 4.05% stake, citing attractive dividends.

PTC India, jointly promoted by NTPC, NHPC, Power Grid Corporation of India, and Power Finance Corporation, has each of the four state-owned firms holding 4.05%. NTPC had recently offered to purchase their stakes, but NHPC’s resistance has stalled the plan. According to executives, NHPC finds the investment lucrative, as PTC declared a dividend of Rs11.7 per share for FY 2024-25. This translates to a payout of around ?14 crore for each co-promoter holding 12 million shares.

Financially, PTC India has been performing strongly, reporting a 61% year-on-year surge in consolidated net profit in the April–June quarter, reaching Rs242.88 crore. Its stock has also gained more than 70% so far this year, further boosting promoter interest in retaining holdings.

The stalemate underscores both the value PTC India continues to deliver and the challenges NTPC faces in consolidating control.