CESC demerges into 4 companies: stock dipped 15%
By DSIJ Team |
5/19/2017 11:33 AM Friday
On May 18, 2017, CESC announced split of the company’s business verticals into four companies for value unlocking and all these entities will be listed and effective by October 1.
These four entities will be focusing on generation, distribution, organised retail and other ventures.
After the restructuring, all generation activity will be housed in CESC generation which is at 2,550 MW now while all the power distribution business will be handled by CESC Ltd. Spencer’s retail will be a separate company and CESC Ventures will handle BPO, FMCG, non-power and non-retail businesses.
CESC’s share capital increased to Rs 198 crore from Rs 132 crore which means Rs 66 crore worth of additional shares will be issued to the shareholders.A shareholder with 10 shares each will get five shares of Rs 10 each in generation, distribution, two shares in CESC ventures and six shares in Spencer’s retail.
On Friday, CESC is trading at Rs 872.90, up by 43.10 points or 5.19% at 9:50 on BSE.It opened with Rs 850.00 and previously closed with Rs 829.80.
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