NTPC subsidiary acquires 5% equity stake in Power Exchange of India; Stock gains ~1%

1 Feb 2022 , 11:17 AM

NTPC Vidyut Vyapar Nigam Ltd. (NVVN), a wholly-owned subsidiary of NTPC Ltd. has acquired a 5% equity stake in Power Exchange of India Ltd (PXIL). NVVN has purchased these shares from NSE Investment Limited, a co-promoter shareholder of PXIL, on January 31, 2022.

NVVN is one of the top power traders in India and the acquisition of an equity stake in PXIL is a strategic opportunity for NVVN to achieve and maintain a leadership position in the rapidly changing Power trading market, the company said in a filing on Monday.

NVVN was formed by NTPC Ltd., India’s largest power generator and a Maharatna Company, in the year 2002, as its wholly owned subsidiary to tap the potential of power trading in the country. NVVN holds a highest Category ‘I’ power trading license in terms of latest CERC regulations.

PXIL is India’s first institutionally promoted power exchange, promoted by NSE Investment Ltd. & NCDEX and has been providing innovative and credible solutions since 2008.

At around 11.20 am, NTPC Ltd was trading at Rs143.35 per share up by Rs1.3 or 0.92% from its previous closing of Rs142.05 per share on the BSE.