CESC drops as firm to seek shareholders' nod for fund raising

CESC lost 2.12% at Rs 744.05 at 14:16 IST on BSE after the company said it will seek approval of shareholders for raising of funds, in the upcoming annual general meeting to be held on 18 October 2014.

The announcement was made after market hours on Monday, 29 September 2014.

Meanwhile, the S&P BSE Sensex was up 132.94 points or 0.5% at 26,730.05.

On BSE, so far 14,000 shares were traded in the counter as against average daily volume of 62,307 shares in the past one quarter.

The stock hit a high of Rs 766.50 and a low of Rs 741.10 so far during the day. The stock had hit a 52-week low of Rs 326.20 on 17 October 2013. The stock had hit a record high of Rs 828.10 on 16 September 2014.

The stock had outperformed the market over the past one month till 29 September 2014, surging 9.36% compared with Sensex's 0.15% fall. The scrip had also outperformed the market in past one quarter, jumping 16.92% as against Sensex's 5.96% rise.

The mid-cap company has equity capital of Rs 124.94 crore. Face value per share is Rs 10.

CESC said it is seeking approval of shareholders in the upcoming Annual General Meeting (AGM) on 18 October 2014, for raising funds. The company proposes to raise upto $150 million or rupee equivalent thereof by issue of shares to qualified institutional buyers (QIBs), institutions, banks, mutual funds, bodies corporate and or other investors as may be decided by the board of directors of the company. The funds will be used for normal business operations, ongoing and future expansion projects and general corporate purposes, CESE said.

CESC's net profit rose 16% to Rs 152 crore on 30.2% growth in net sales to Rs 1848 crore in Q1 June 2014 over Q1 June 2013.

CESC is India's first fully integrated electrical utility company.

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