CESC trades ex-date for demerger; stock gain 5%

Shares of CESC have moved higher by 5% to Rs 704 per share on the BSE in an otherwise range-bound market on Tuesday. The stock turned ex-date for demerger of non-power investments into new companies. CESC transferred the retail undertaking business into RP- SG Retail and of the IT undertaking into RP- SG Business Process Services.

The company has fixed October 31, 2018, as the record date for the purpose of determining the eligible shareholders of the company entitled to receive the said equity shares of RP-SG Retail and RP-SG Business Process Services.

Each existing shareholder of CESC, for every 10 of his holding, will be allotted an additional 6 shares of Rs 5 each in new Retail and additional 2 shares of Rs 10 each in the Venture Company.

“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,” CESC said in a statement.

At 01:14 PM; the CESC was trading 4% higher at Rs 696 on the BSE, as compared to 0.10% decline in the S&P BSE Sensex. A combined 2.72 million equity shares changed hands on the counter on the BSE and NSE so far.