State-owned Power Grid Corporation of India Ltd (POWERGRID) announced the acquisition of 77,30,225 equity shares of IL&FS Energy Development Company Ltd (IEDCL) in the joint venture Cross Border Power Transmission Company Ltd (CPTCL) for ₹14.73 crore. This transaction increases POWERGRID’s stake in CPTCL to 42%.
In a regulatory filing, Power Grid Corporation stated: “Power Grid Corporation of India Limited has acquired 77,30,225 equity shares of IL&FS Energy Development Company Limited in the Joint Venture Company viz. Cross Border Power Transmission Company Limited.”
The acquisition comes as part of IEDCL’s divestment plan mandated by the National Company Law Tribunal (NCLT) under its resolution framework. The transaction aligns with the Shareholders’ Agreement, which allows existing shareholders, including POWERGRID, Satluj Jal Vidyut Nigam Ltd (SJVNL), and Nepal Electricity Authority (NEA), to purchase shares proportionate to their existing holdings.
Established in 2006, CPTCL is a joint venture among POWERGRID, IEDCL, SJVNL, and NEA. The company plays a crucial role in cross-border energy connectivity, focusing on the Indian section of the Muzaffarpur-Dhalkebar 400 kV double circuit transmission line that connects India and Nepal.
The divestment by IEDCL aligns with the NCLT’s resolution framework, facilitating a smoother transition of assets while ensuring the continuity of operations. POWERGRID’s increased stake strengthens its position in CPTCL and reinforces its commitment to enhancing regional energy cooperation and infrastructure.
On January 20, 2025, Power Grid Corp share price traded down by 0.12% at 9:18 AM (IST) ₹302.20. Power Grid Corp share price reached a 52-week high of ₹366.20 on November 25, 2024, and a 52-week low of ₹232.45 on January 19, 2024. As per BSE, the total traded volume for the stock stood at 5436 shares with a turnover of ₹16.46 lakhs.
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Published on: Jan 20, 2025, 11:38 AM IST
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