Power Finance Corporation Ltd. announced that Kurnool III PS RE Transmission Ltd., a special purpose vehicle or SPV under its wholly owned subsidiary PFC Consulting Ltd., has been transferred to Power Grid Corporation of India Ltd.
The transfer was completed on Thursday, with Power Finance receiving Rs 19.04 crore as per the share purchase agreement, according to an exchange filing.
"Kurnool III PS RE Transmission Ltd. was established for the transmission system strengthening at Kurnool-III PS to integrate additional renewable energy generation projects," the filing stated.
With the sale and transfer process now complete, Power Grid takes over the SPV’s operations.
The successful bidder does not belong to promoter and promoter group, the company said. "The transaction does not fall within the purview of related party transaction," it further said.
Power Finance is a 'Maharatna' public sector undertaking that provides financial services for India's power sector.
Shares of Power Finance on Thursday closed 2.56% higher at Rs 421 apiece on the NSE, compared to the 0.45% advance of the benchmark Nifty 50. The stock has risen 9.49% in the last 12 months and fallen 6.13% on a year-to-date basis.
Twelve analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 31.4%.
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