TCS to dilute National Power Exchange stake
Reeba Zachariah | TNN Mumbai: India’s largest software services firm, Tata Consultancy Services, will part with a significant portion of its 50% stake in National Power Exchange (NPE) to a group of investors, a person familiar with the development said. A mix of financial institutional investors and private power producers have shown interest in being a part of the commodity exchange, which was floated late last year in partnership with three government enterprises. National Hydroelectric Power Corporation, Power Finance Corporation and National Thermal Corporation equally hold the remaining 50% stake. NPE would be restructured in a fashion where TCS’s holding would considerably reduce to 16.66% through fresh equity. The final shareholding would be such that 50% of NPE would be held by government entities including NHPC, PFC and NTPC and 50% to be held by private companies, including TCS. “The process has already started. We hope to close the transaction in the next few months,’’ said a source. He, however, declined to confirm the names of the new investors as the deal is at preliminary stage. The names doing the rounds include GVK, IDBI and IL&FS, among others. TCS’s interest in NPE is based on its intent to develop the infrastructure for an electronic trading platform for electrical energy, clearing and settlement. Interestingly, one of the milestones in TCS’s growth trajectory was the SEGA project in 1989. It involved designing, building and implementing a new system for the Swiss Corporation for securities, clearing and settlement on a turnkey basis. That set the stage for TCS to make National Stock Exchange, India’s largest bourse in terms of volumes, and National Securities Depository, paperless. NPE is one of the rare cases where the software vendor has invested in a non-related business venture (read: client). Its sibling, Tata Power, too holds a stake in Indian Energy Exchange—India’s first power exchange. The third power exchange currently operating in India is the Power Exchange India promoted by National Stock Exchange and National Commodity and Derivates Exchange. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
