Companies
TD Power Systems’ promoters plan to offload over 24% stake
Summary
The shares are expected to be sold at a 4.12% discount to Thursday’s closing price, or for over ₹800 crore
Mumbai: T D Power Systems Ltd, a producer of AC generators and motors, is planning to offload a 24% stake in the company, or over 37 million shares, as per a term sheet reviewed by Mint.
The shares are expected to be sold at a 4.12% discount to Thursday’s closing price, or for over ₹800 crore ($98 million).
The stock closed at ₹223.2 apiece on 28 June, according to the term sheet.
TD Power’s selling shareholders include Nikhil Kumar, Mohib Nomanbhai Khericha, Hitoshi Matsuo, Sofia Mohin Khericha and Lavanya Sankaran. Currently, the promoters hold a 58.45% stake, which will be reduced to 34.45% on completion of the sale. Khericha is the chairman of TD Power, while Kumar is the managing director. The trade arrangement will be handled by Motilal Oswal.
TD Power has a market cap of ₹3,470 crore as of 28 June. On 29 June, the markets were closed for Bakri-Id.
Founded in 1999, TD Power went public in 2011. In FY23, the company reported a revenue of ₹821.48 crore and a net profit of ₹88.46 crore. “Orders have increased from domestic market as well as export market across the board," Kumar, said during an earnings call on 11 May. “The domestic market is seeing a big revival in capex, and we see demand across all sectors," he added.
“Macro factors continue to drive the business—the move to renewables, etc. Increased demand for power from electric vehicles and for domestic heating in the future, will provide sustained demand for the long term for power plants in this segment," he said.
The company expects to see 60-70% growth in the hydro-segment within a year, especially in its growth markets of Nepal, Vietnam and Europe. It owns a technology for four- pole generators of up to 60 MW and has a licence from Siemens AG for two-pole generators for up to 200 MW.
The company makes generators that can cater to hydro, steam, gas, wind, and geothermal, according to its annual report. The generators work on both conventional and renewable fuel-based power plants with output capacities ranging from 1 MW to 200 MW for steam gas turbines, up to 35 MW for hydro, up to 20 MW for diesel, gas engines and customized rating for wind turbines, its annual report said.
On Wednesday, the equity benchmarks hit record highs on the back of foreign fund inflows and the advance of the southwest monsoon boosting investor sentiment.
The Nifty and the Sensex crossed the 19,000 and 64,000 marks, respectively, after a long period of consolidation, Mint reported.
