In a major development, NHPTL (National High Power Test Laboratory Pvt Ltd) on Tuesday, June 11, through a regulatory filing announced that the Board of Directors of the has given a green light to the transfer of a large block of shares from NHPC (National Hydroelectric Power Corporation) to Power Grid Corporation of India Limited.
The decision to this was made in a meeting that was held on June 10, 2024.
Key Details of the Share Transfer
Share Quantity Transferred: 1,31,63,750 shares
Former Holding by NHPC: 20 per cent
New Holding by NHPC: 12.50 per cent
Impact on NHPTL's Associate Status
"The post-transaction equity holding of NHPC in NHPTL becomes 12.50 per cent from 20 per cent. Accordingly, NHPTL ceases to be an Associate Company of NHPC Limited," the company added in the BSE exchange filing.
Background and Reasons for the Transfer
The transfer aligns with a 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.
Moreover, in September 2022, a revival plan for NHPTL was agreed upon with the Ministry of Power.
Power Grid's Equity Stake: 50 per cent
Other JV Partners' Equity Stakes: 12.5 per cent each (NHPC, NTPC, DVC, and CPRI)
Future governance
Upon completion of the equity infusion by Power Grid, the NHPTL's board composition will be revised to reflect the new ownership structure.
The board will include:
Two Directors from Power Grid: Including the Chairman of NHPTL
One Nominee Director from Other Promoters: On a rotational basis
Share performance
The shares of NHPC Ltd on Tuesday at 3:30 PM IST closed at Rs 102.40, up by 0.41 per cent.
