PTC India aims IPO of financial unit in FY11

PTC India aims IPO of financial unit in FY11

New Delhi: Power trader PTC India aims to launch an initial public offering of its PTC Financial Services unit in the fiscal year to end March 2011, joining a growing list of companies that are tapping the markets in Asia’s third largest economy by listing a unit.

“We will be selling 12.75 crore (127.5 million) new shares in the IPO and post IPO, our stake will come to 60% from 77% now. Sometime this month, we will be filing a draft red herring prospectus," PTC India chairman T.N. Thakur told reporters.

PTC India is 16% owned by state-run utilities NTPC, NHPC, Power Grid and Power Finance Corp.

Some of the other companies that plan to raise funds by listing their units include Hindustan Construction, which is listing its township developer, and Indian engineering and construction firm Larsen and Toubro whose L&T Finance Holdings unit has filed for an IPO to raise up to $333 million.

PTC India’s Thakur also said the company aims to import 350,000 tonnes of coal in 2010-11 and 1.5 million tonnes in the next fiscal year.

“We have an annual deal to import 700,000 tonnes coal. It started in October. Next year from October, we will start importing coal under our new deal to import 1.5 million tonnes coal a year," he said.

“So next fiscal, our import should be about 1.5 million tonnes."