New Delhi: Power giant NTPC said Monday that its arm NTPC Vidyut Vyapar Nigam Ltd (NVVN) has acquired a five per cent equity stake in Power Exchange of India Ltd (PXIL). NVVN purchased the stake from NSE Investment Ltd, a co-promoter shareholder of PXIL, January 31, 2022, according to a statement. Financial details however, were not disclosed.
Pursuant to the transaction, NSE Investments Ltd’s stake in PXIL would come down to 29.21 per cent.
NVVN is a leading power trader in India and the acquisition of an equity stake in PXIL would provide a strategic opportunity for the company to achieve and maintain a leadership position in the rapidly changing power trading market. It was set up in 2002 as a wholly-owned subsidiary of NTPC.
“With this investment, the largest stakeholder and a beacon of power sector’s growth in India has reposed faith in PXIL. This investment validates the capabilities of PXIL and more importantly demonstrates the need for a competitive power market in our country,” a PXIL spokesperson said.
PXIL is India’s first institutionally promoted power exchange.