CESC set to get delisted from London Stock Exchange

The company today secured shareholders approval for same at its AGM

As part of its cost cutting exercise, RP Sanjiv Goenka group flagship company CESC is set to get delisted from London Stock Exchange (LSE).

 

The market of the company's shares in UK has practically frozen and the dealings in the shares in recent years has been very low. "We were historically listed on LSE. There has been no trading as such. The idea was to cut off the huge expenses which we incur in having the company listed on the LSE," Sanjiv Goenka, chairman, CESC said. 

 

"I do not exactly remember the number, but it was about  80,000 to 90,000 pound annually and there were all kinds of expenses. If one has to do fresh listing you can always do it. But now we want to to get delisted from LSE," he told Business Standard.

 

According to company's annual report, out of about 40,000 shareholders the company has on date, the number of shareholders registered on the UK register is only around 200. 

 

The company today secured shareholders approval for same in the Annual General Meeting (AGM). "It is felt that no useful purpose is being served by continuing with the LSE listing and steps should be taken for delisting the said shares. Upon delisting the aforesaid shares from LSE, the company will continue to service its UK shareholders in conformity with the prevalent laws and regulations applicable to such shareholdings," the explanatory statement in regard the concerned resolution, said.

 

Chandrapur power project hit by demand slowdown:

 

Speaking on the upcoming projects of the company, Snajiv Goenka said the Rs 3000-crore 600 MW (2x300MW) Chandrapur thermal power project in Maharashtra, which is scheduled to be commissioned in the current fiscal, was facing problem due to lack of demand.

 

"Chandrapur is an open access power plant. But discoms are not inviting bids for power purchase, which been a concern for the plant," he noted.

So far the plant is concerned, CESC has only able to sign Power Purchase Agreement (PPA) of just 100 MW with Tamil Nadu State utility. "we are expecting some more PPAs in coming months," he added.

 

According to Goenka, Haldia power project  was facing no such problem, as the power from the plant would go to its own distribution system. The 600 Mw project is expected to be commissioned by the third quarter of next financial year.

 

Q1 net up 4.8%:

 

CESC today reported 4.8% rise in the net profit at Rs 131 crore for the quarter ended June 30, 2013 as against corresponding period of the previous fiscal.

 

The net sales of the company in the period stood at Rs 1419 crore, registering a marginal 1% growth. "The numbers are more or less same. But, given the current scenario, we are happy with the result," Goenka said.