PTC India Financial Services Limited has achieved resolution of one of its NPA loan account in the hydro segment namely Dirang Energy Pvt. Ltd - 2 x 72 MW Hydroelectric Project, in West Kameng District of Arunachal Pradesh.
Post the release, the company stock was in demand in early trade on Monday. At around 9.40 am, each stock was trading at Rs20.75 up by Rs0.9 or 4.53% from its previous closing of Rs19.85 on the BSE.
The resolution was achieved under the One Time Settlement (OTS) proposal offered by borrower’s promoter company, ‘Patel Engineering Ltd’ (PEL) to all the consortium lenders on bilateral basis. PFS has already issued the Letter of Acceptance (LOA) to the OTS proposal offered to PFS at a consideration of Rs41.37cr comprising of Rs9cr cash and Rs32.37cr through issuance of PEL equity share listed in BSE & NSE.
The documentation process is at the advanced stage. It is pertinent to mention that out of total principal outstanding of Rs74.25cr, PFS had already made provisioning of Rs54.14cr, as on quarter ended September 30, 2020.
Post closure of the above mentioned transaction, PFS stressed loan portfolio is expected to come down by Rs74.25cr with a significant write-back on the provisioning already made.