CESC receives certified copy of the order of National Company Law Tribunal on its Demerger Scheme
Deepthi | Myequity news | Date : 12-10-2018 19:10:00 IST
CESC has received certified copy of the order of National Company Law Tribunal on its Demerger Scheme on 5th October, 2018. The demerger of Generation Undertaking shall be effective upon approval of the PPA between the Generation and Distribution companies from WBERC.
Based on the NCLT Order, the Board met, considered and decided the following:
Pending approval of the Power Purchase Agreement between the Generation and Distribution companies, the non-power investments of CESC would be demerged into two entities as planned in the scheme, viz. new Retail and Venture companies. Now, there would be three companies, viz. CESC, new Retail and Venture Companies.
Each existing shareholder of CESC, for every 10 of his holding, will be allotted additional 6 shares of Rs. 5 each in new Retail and additional 2 shares of Rs. 10 each in the Venture company. Paid up Equity Share capital of the new Retail & Venture Companies would be Rs. 40 Cr. and Rs. 26 Cr. respectively, over and above the equity share capital of CESC of Rs. 132 Cr.
The above restructuring will result in benefits for all shareholders. It will allow unlocking value for the investors, give a focused management attention to each of the verticals to pursue respective growth plans and allow the new entities to take advantage of the market values of Retail, FMCG and IT business.
Record date for this purpose would be 31st October, 2018 and listing of new Retail and Ventures shares would take place thereafter.
The Calcutta Electric Supply Corporation or CESC is the Kolkata-based flagship company of the RP-Sanjiv Goenka Group, born from the erstwhile RPG Group, under the chairmanship of businessman Sanjiv Goenka. It is an Indian electricity generation and the sole distribution company serving 567 square kilometres (219 sq mi) of area administered by the Kolkata municipal corporation, in the city of Kolkata, as well as parts of Howrah, Hooghly, 24 Parganas (North) and 24 Parganas (South) districts in the state of West Bengal. It serves 3.0 million consumers approximately, which includes domestic, industrial and commercial users.