| CESC Ltd has succeeded in placing its global depository shares (GDSs) worth $40 million on September 27, the company announced late on Tuesday.
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| CESC will issue 7,930,685 GDSs representing approximately 9.6 per cent of the post-offer equity share capital of the company.
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| The proceeds from the offering will be used primarily to set up the third generating unit of 250 mega watt capacity at its existing power station at Budge Budge, south of the city of Kolkata.
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| It had also signed up for a major power plant in Jharkhand and for a 1000-MW power plant in the port city of Haldia in West Bengal.
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| The company had approached the overseas market with the offer on September 26. The GDSs were issued at a price of little of $5 per GDS comprising one equity share at a price of 222 per equity share of face value of Rs 10 each.
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| The overseas price was at a premium of 0.6 per cent to the average closing price of CESC shares in the last four trading days.
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| Sanjiv Goenka, vice-chairman of CESC Ltd, said the promoters were pleased with the strong response from overseas investors which included large institutional buyers.
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| CLSA Asia Pacific Markets and ICICI Securities Inc. acted as the joint global co-ordinators and joint book runners for the offering. Kotack Mahindra (UK) Ltd acted as co-lead manager.
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| A release issued by CESC here quoted Pankaj Agarwal, the managing director of investment banking at CLSA, India, as saying that the GDS issue received good response from top quality investors across the world. |
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