PTC India links up with Ashmore for maiden fund

The Indian power trading company launched its first power-focused private equity fund in May, which it seeded through a share issue on the Bombay Stock Exchange. The terms of the joint venture agreement with Ashmore are still being discussed. The fund's target amount has not been disclosed.

PTC India, formerly known as the Power Trading Corporation of India, has selected UK-based emerging markets specialist Ashmore Investment Management as its joint venture partner for the formation of its maiden private equity fund.

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In May, the company raised INR5 billion ($107 million; €72 million) through the issue of approximately 66.7 million shares at INR75 per share. The capital raised then is being used to anchor the fund. The remainder of the capital will be raised from third party investors.

The fund’s target has not been disclosed.

The structure of the fund and the joint venture agreement is currently under negotiation, PTC India said in a statement to the Bombay Stock Exchange.

The fund will invest in “needy” projects, thereby speeding up their financial closure. In May, Tantra Narayan Thakur, chairman and managing director of PTC India, told Reuters the fund would buy up to 30 percent equity stakes in private power projects, which will sell power through the company’s power trading facilities.

Based in New Delhi, PTC India provides long- and short-term power sale solutions as well as providing equity support to energy projects.

Ashmore is a London Stock Exchange-listed fund manager. The firm’s strategies include private equity, distressed debt, US dollar-denominated debt, local currency-denominated debt, public equities and corporate high yield.