The Union power ministry officials will meet top executives from the four PSU promoters on Friday when the PTC India stake sale is likely to be discussed, one of the three people said on the condition of anonymity.

Currently, NHPC, NTPC Ltd, Power Grid Corp. of India Ltd and Power Finance Corp. Ltd hold about 4.05% each in PTC India, totalling 16.2%. The four PSUs had appointed ICICI Securities as merchant banker in 2022 for the transaction, after the power ministry approved their exit plan.

“The companies have been eyeing an exit for some time now and are expecting to carry out the stake sale by the end of this financial year,” the person cited above added.

Queries emailed to NHPC, NTPC, PowerGrid and PFC remained unanswered.

Acquiring PTC India would expand the power trading share of NHPC, which already has a licence for this purpose. The move may also help since NHPC is involved in hydro projects in Nepal and Bhutan, countries which export power to India. Having a power trading company of its own would help NHPC in efficient trading and supply of green power.

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However, NHPC will not buy PTC India Financial Services (PFS), the controversy-hit financing arm of PTC India, the two people said. Both PTC India and PFS have been under strict regulatory scrutiny over issues of corporate misgovernance and ever-greening of loans by PFS.

A PTC India spokesperson said the company is not aware of any development on the stake sale.

“The information below concerns our promoter’s investment into PTC India. They have been promoters of PTC since inception days. Since the company’s public listing and follow-on QIPs, they collectively hold 16.20% in the company.”

PTC India has been a dividend-paying company prior to listing, and promoters collectively have received more than ₹320 crores as dividend since their investment, the spokesperson added. “Any sell-off/consolidation or activity and arrangement can be a part of their investment (severally or jointly) outlook which company is not aware of.”

Although there was a rethink in the government in 2023 over the stake sale, talks have picked up in the past few months.

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“There is an internal thought in the company (NHPC) that the core trading business of PTC India has been largely doing well and has created value for the investors over the years. Dividend flow has also been largely consistent. So, if other promoters want to exit it, then the hydro major would offer to buy out their shares. It’s better not to exit the company as a whole. However, given that that promoter stake is just around 16%, and not a majority stake, it cannot be said to be a strategic investment,” the second person said.

PTC India is among India’s largest power trading companies. NTPC too has a separate power trading arm, NTPC Vidyut Vyapar Nigam Ltd.

Both PTC India and its subsidiary PFS have been in the news after several PFS directors resigned in February 2022 alleging corporate misgovernance. In June, the Securities and Exchange Board of India barred the PTC India’s former chairman Rajib Kumar Mishra, and PFS former managing director Pawan Singh from holding any position on the board or management of listed companies for six months and two years respectively over suspected corporate misgovernance in PFS. The market regulator also imposed penalties of ₹10 lakh and ₹25 lakh respectively on Mishra and Singh.

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However, last month, the Securities Appellate Tribunal (SAT) quashed the Sebi order barring Mishra as director in listed firms. Mishra had approached SAT on the grounds that he was not in charge of PFS.

Following this, the PTC India board met and decided that Mishra cannot be inducted as a director or CMD of the company.

On Thursday, shares of PTC India fell 3.93% to close at ₹138.15, while the benchmark Sensex index fell 0.68%. Its market capitalization stood at ₹4,089.35 crore.