PTC India shares rise 3.5% after company divests renewable energy unit for ₹925 crore

Shares of PTC India popped up 3.5% in today's early morning trade, March 05, reaching ₹149.20 apiece. The uptick in price came after state-owned oil explorer Oil and Natural Gas Corporation (ONGC) announced on Tuesday, March 4, that ONGC Green Ltd., its wholly owned subsidiary, had acquired clean energy firm PTC Energy for ₹925 crore.

PTC Energy Limited, established in August 2008 as a wholly owned subsidiary of PTC India Limited, has an aggregate operational wind generation capacity of 288.80 MW across seven locations in Andhra Pradesh (AP), Madhya Pradesh (MP), and Karnataka. It operates 157 Wind Turbine Generators (WTGs) across all its wind farms.

PEL recorded revenue from operations of ₹322.49 crore during FY24, compared to the previous year’s revenue of ₹296.77 crore. The profit before tax and profit after tax for FY24 stood at ₹56.17 crore and ₹41.79 crore, respectively.

India has committed to setting up 500 GW of non-fossil fuel electricity generation capacity by 2030 but is still falling short of its previously set target to add 175 GW by 2022.

"By way of the acquisition of PEL through OGL, a wholly owned subsidiary, ONGC will scale up its investments in the renewable energy sector to achieve its objectives of de-risking its portfolio against long-term disruptions and reducing its carbon footprint by making strategic investments in the energy transition space," ONGC said in its regulatory filing.

PTC India Limited was established in 1999 by the Government of India as a public-private initiative and operates in the power trading business. It is promoted by Power Grid Corporation of India Limited (PGCIL), NTPC Limited (NTPC), Power Finance Corporation Limited (PFC), and NHPC Limited (NHPC).

Stock price history

After witnessing a one-way spike between October 2022 and February 2024, resulting in a gain of 138%, the stock came under selling pressure in the following months. The broader market sell-off further compounded its decline, leading to a 42% drop from its peak.

It ended the last five months in the red and is now attempting to gain momentum in the current month, rallying nearly 7% so far.

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