NTPC Limited, a ‘Maharatna’ CPSE under Ministry of Power, has entered into Share Purchase Agreements with Government of India to acquire 74.496% equity stake in THDC India Limited (THDCIL) and 100% equity stake in North-Eastern Electric Power Corporation Limited (NEEPCO).
NTPC will acquire 2.73 crore equity shares in THDCIL (representing 74.496% of share capital) for a consideration of Rs. 7,500 crore (Rupees Seven Thousand Five Hundred Crore only). India’s largest power producer will also purchase 360.98 crore shares in NEEPCO (representing 100% of share capital) for an amount of Rs. 4,000 crore (Rupees Four Thousand Crore Only).
Post acquisition, THDCIL and NEEPCO will become subsidiaries of NTPC.
About THDCIL – It is a Category-I, Schedule A ‘Mini Ratna’ CPSE and is a joint venture of the Government of India (74.496%) and the Government of Uttar Pradesh (25.504%). It is primarily engaged in planning, design, construction, operation & maintenance of power generation projects (hydro, thermal & other renewable). The total installed capacity of the operational power projects of THDCIL as on December 31, 2019 was 1,513 MW comprising of 2 hydro (1400 MW) and 2 wind power generating plants (113 MW). Further, THDCIL has projects with aggregate capacity of 2,838 MW under various stages of execution. It had a networth, turnover and PAT of about Rs. 9,281 crore, Rs. 2,850 Crore and Rs. 1,256 Crore respectively in FY 2019.
About NEEPCO – It is a Category-I, Schedule A ‘Mini Ratna’ CPSE. The Company is involved in planning, design, construction, generation, operation & maintenance of power stations in the North Eastern Region (NER) of India. The total installed capacity of the operational projects of the NEEPCO as on December 31, 2019 was 1,457 MW comprising 7 hydro (925 MW), 3 gas based thermal (527 MW) and 1 solar (5 MW) generating plants. Further, another 600 MW hydro-electric capacity is likely to be commissioned soon. As on March 31, 2019, it had a networth, turnover and PAT of Rs. 6,301 Crore, Rs. 2,108 Crore and Rs. 214 Crore respectively.
SBI Capital Markets Limited was the Transaction Advisor to NTPC for the above transactions.