Power Grid Corporation of India Ltd (PGCIL), in a stock exchange filing, said that it has made a fresh equity infusion in its joint venture Energy Efficiency Services Ltd (EESL).
The filing said that PGCIL has infused equity worth Rs.407.49 crore in EESL – a joint venture between PGCIL, NTPC, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
PGCIL’s shareholding in EESL now is Rs.463.61 crore in the paid-up capital of EESL that is now stands enhanced to Rs.1390.82 crore. This implies that PGCIL equity holding in EESL is now 33.33 per cent.
Background
It may be recalled that PGCIL, in a board meeting held on August 10, 2021, had approved the infusion of fresh equity capital in its joint venture EESL. The PGCIL board had approved the proposal to infuse fresh equity up to Rs.425 crore in EESL. Against this, the actual infusion, as reported in this news item, is Rs.407.49 crore.
New shareholding
Though the latest shareholding pattern of EESL (after PGCIL’s current equity infusion) is not yet officially available. PGCIL was always a minority shareholder in EESL. As of March 31, 2020, NTPC was the largest shareholder in EESL with 47.15 per cent, followed by PFC with 24.97 per cent, REC with 22.18 per cent and PGCIL with 5.70 per cent.
According to calculations made by T&D India, NTPC and PGCIL now are largest holders with 33.33 per cent equity stake each in EESL. PFC and REC have a holding of roughly 17 per cent and 15 per cent, in EESL’s current equity capital.
Nomination of director
Since PGCIL’s equity stake was so far less than 10 per cent, it did not have the right to nominate a director on the board of EESL. This is in keeping with provisions envisioned under the Joint Venture Agreement of EESL. Now, PGCIL will be in a position to perform such a nomination, as would be the other shareholders – NTPC, PFC and REC.
Featured photograph shows snapshot of the dashboard of Street Lighting National Programme (SLNP) — one of the several energy efficiency-based programme spearheaded by EESL — accessed on September 16, 2021. Photograph is for illustration only.
