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Energy Efficiency Services Ltd (EESL) is going to raise another ₹300 crore from its existing promoters in the form of equity infusion by March 2019.
EESL is a joint venture between four public sector undertakings set up under the administrative control of the Ministry of Power.
₹1,000-cr paid-up capital
“The present corpus of EESL is ₹700 crore. We have asked the promoters for more equity and aim to have a paid-up capital of ₹1,000 crore by March 2019 end,” a company official told BusinessLine .
Under the present equity structure, NTPC and Power Finance Corporation (PFC) hold a 36 per cent stake each in EESL. The other promoters are Rural Electrification Corporation (REC) and Power Grid Corporation of India (PGCIL) with REC alone holding around 25 per cent stake.
Normally, PFC, REC and NTPC have an equal share in EESL and the company’s equity structure underwent a change in the second quarter of financial year 2018-2019.
“EESL now has a larger shareholding of PFC and NTPC as REC has not infused equity till now,” a PFC official said.
“The REC board is considering the equity infusion proposal.
“Once it is approved, there will be a 32 per cent stake each of NTPC, PFC and REC in EESL. PGCIL will resume holding a 4 per cent share of equity,” the EESL official said.
EESL has been tasked with implementing mass procurement programmes under the Ministry of Power. The company is central to many government initiatives including those on smart meters, electric vehicles, LED bulbs, street lights, energy efficient air conditioners, and solar water pumps for irrigation.
The company has also set its eyes on an IPO in the financial year 2019-2020. When asked about the IPO plans for next fiscal, the EESL official said, “We will see when the time comes.”
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