NHPC Ltd has announced the Completion of sale of partial stake in NHPTL

Post completion of equity infusion by Power Grid, the NHPTL's board composition will be revised to reflect the new ownership structure.

NHPC Ltd has announced the Completion of sale of partial stake in NHPTL

NHPC has announced that the board of its joint venture, National High Power Test Laboratory Pvt., has sanctioned the transfer of 1.31 crore equity shares to Power Grid Corp.

The NHPTL board of directors in a meeting on Monday sanctioned the share transfer from NHPC to Power Grid, adhering to the supplementary JV agreement between the JV partners of NHPTL, the company said in an exchange filing.

 

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The Board of Directors of NHPTL in its meeting held on 10.06.2024 has approved the transfer of 1,31,63,750 (One Crore Thirty One Lakh Sixty Three Thousand Seven Hundred Fifty) shares from NHPC to Power Grid Corporation of India Limited, in line with the Supplementary JV Agreement signed between JV Partners of NHPTL.

The post-transaction equity holding of NHPC in NHPTL becomes 12.50% from 20%. Accordingly, NHPTL ceases to be an Associate Company of NHPC Limited, as per the company's exchange filing made.

This transfer of stakes comes along the Supplementary Joint Venture (JV) Agreement signed between the JV partners of NHPTL earlier this year. In April 2024, Power Grid Corporation committed to investing funds and acquiring a 50 per cent stake in NHPTL.

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Moreover, in September 2022, a revival plan for NHPTL was agreed upon with the Ministry of Power. As per shareholder ratio Power Grid's Equity Stake is 50 percent. Other JV Partners' Equity Stakes is 12.5 percent each (NHPC, NTPC, DVC, and CPRI).

Post completion of equity infusion by Power Grid, the NHPTL's board composition will be revised to reflect the new ownership structure.

The board will include comprisingly, Two Directors from Power Grid: Including the Chairman of NHPTL and One Nominee Director from Other Promoters on a rotational basis.

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