PFS gains after divestment of entire stake in Meenakshi Energy

PTC India Financial Services rose 3.09% to Rs 12.34 at 9:16 IST on BSE after the company said it has divested its entire stake of 16.76% in Meenakshi Energy for a consideration of Rs 209.73 crore.

The announcement was made after market hours on Tuesday, 17 December 2013.

Meanwhile, the S&P BSE Sensex was up 43.51 points or 0.21% at 20,655.65.

On BSE, so far 27,000 shares were traded in the counter as against average daily volume of 4.78 lakh shares in the past two weeks.

The stock hit a high of Rs 12.36 and a low of Rs 12.24 so far during the day.

Meenakshi Energy (MEPL) is setting up 1,000 megawatts (MW) coal based thermal power project in Andhra Pradesh, of which phase I of 300 MW is commissioned.

PTC India Financial Services (PFS) said it continues to maintain a strong focus on growing its loan book, backed by emphasis on renewable energy and diversification across the energy value chain. The company said it maintains a diversified borrowing mix and is adequately funded to scale up its lending activity and achieve sustained growth. The current equity investment exit will further aid headroom for growth, it added.

Commenting on the transaction, Mr R M Malla - MD & CEO, PFS said, "We are delighted to announce that we have successfully exited from one of our equity investments - Meenakshi Energy. We planned this exit keeping in view, the right opportunity and a robust return which will augment Company's networth. It has been our constant endeavor to leverage our expertise through continuous evaluation of projects and entity at the right stage in order to deliver maximum value to the shareholders. We remain confident of maintaining the pace of growth of our business".

PFS' net profit rose 4.3% to Rs 30 crore on 49.7% growth in total income to Rs 109.46 crore in Q2 September 2013 over Q2 September 2012.

PFS is an Indian non-banking finance company promoted by PTC India and classified as Infrastructure Finance Company (IFC) by the Reserve Bank of India. The company offers an integrated suite of financial services with a focus on infrastructure development, which includes debt (short term and long term) financing and making equity investments in, private sector Indian companies in the entire energy value chain. PFS also provides fee based syndication and other services as well as carbon credit financing against Certified Emissions Reduction (CER).

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