NTPC Limited has informed the Exchange about execution of termination agreement and acquisition of MCD''s 26% shareholding by NTPC Limited.
NTPC · price
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NTPC Limited has signed a termination agreement with Municipal Corporation of Delhi (MCD) and NTPC EDMC Waste Solutions Private Limited (NEWS) to end their joint venture agreement dated June 2019. NTPC is acquiring MCD's 26% stake (52,000 equity shares) in NEWS for Rs. 5.2 lakh in cash, at face value of Rs. 10 per share. Post-acquisition, NEWS will become a wholly-owned subsidiary of NTPC. The transaction is classified as a related party transaction but is exempt from Audit Committee approval as it involves a listed PSU and a government/local authority entity. NEWS was incorporated in June 2020 for waste management and energy generation, with minimal turnover of Rs. 1.28 lakh in FY 2024-25. Completion is expected in Q1 FY 2026-27.
Minor positive for NTPC as it consolidates its waste-to-wealth business under full ownership. The acquisition cost is negligible at Rs. 5.2 lakh, but it removes partnership constraints and simplifies governance of the subsidiary.