PTC India IPO Review

 

PTC India IPO Review

PTC India has filed the draft prospectus with SEBI on 22nd Dec 2010 for its subsidiary PTC India Financial Services (PFC).

PTC India Ltd. (PTC), the leading provider of power trading solutions in India, is a Government of India initiated Public-Private Partnership, whose primary focus is to develop a commercially vibrant power market in the country.

PTC is planning to raise Rs.700 crores from this IPO.

PTC Financial Services' present equity capital is Rs 600 crore, of which 77 per cent is held by PTC India and 11.5 per cent each by Goldman Sachs and Australia''s Macquarie.

Since its inception in 1999, PTC has sought to provide holistic services that address the sustainability of a power market model, including intermediation for long-term supply of power from identified domestic and cross-border power projects, financial services like providing equity support to projects in the energy value chain, advisory services and foray into providing fuel linkages to power plants of various utilities / generators participating in the power market.

Thus, the fundamentals of PTC India are very very strong and I will personally give it 4 out of 5 stars. This is a MUST buy IPO by government sector company. Go for it. And stay invested in the shares of this company for a long time horizon say more than 5 years.