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NHPC stock gains as it signs supplementary JVA to sell partial stake in NHPTL to Power Grid

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Post the sale, Power Grid will hold around 50% equity in NHPTL

April 24, 2024 / 11:22 AM IST

NHPTL, according to the company is a "High Power Short Circuit Test Facility" that aims to provide short circuit testing for "national power equipment manufacturers, national power utilities and international power equipment manufacturers from SAARC, ASEAN & Middle East Countries in conformance to Indian and International Standards".

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Shares of NHPC gained 0.6 percent during morning trades on the NSE on April 24, a day after the company reported that it had signed a  supplementary joint venture agreement for the sale of partial stake in National High Power Test Laboratory (NHPTL). At 11 am, the stock was trading at Rs 90.35.

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In a regulatory filing, NHPC said that it had signed a JVA with NHPC, NTPC, Power Grid Corporation of India, Damodar Valley Corporation (DVC), Central Power Research Institute (CPRI) & NHPTl. Currently, NHPC holds 20 percent stake in NHPTL. Power Grid Corporation is the buyer and is an existing Promoter of NHPTL. Under the agreement, NHPC will sell 1.31 crore shares to Power Grid at a notional total consideration of Rs 1.

NHPTL is unlisted. Post the sale, according to the filing, Power Grid will hold around 50 percent equity in the company. Previously, all five JV partners held 20 percent stake each. Now, the remaining four partners- NHPC, NTPC, DVC & CPRI will hold 12.5 percent each.

Also read: NHPC board approves raising Rs 6,100 crore debt in 2024-25

NHPTL, according to the company is a "High Power Short Circuit Test Facility" that aims to provide short circuit testing for "national power equipment manufacturers, national power utilities and international power equipment manufacturers from SAARC, ASEAN & Middle East Countries in conformance to Indian and International Standards".

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