CESC gains after board OKs raising funds

CESC rose 2.70% to Rs 786.80 at 14:18 IST on BSE after the company said its board approved raising about $150 million on a private placement basis.

The announcement was made after market hours on Monday, 22 September 2014.

Meanwhile, the BSE Sensex was down 281.56 points, or 1.03%, to 26,925.18.

On BSE, so far 35,000 shares were traded in the counter, compared with an average volume of 62,269 shares in the past one quarter.

The stock hit a high of Rs 801.95 and a low of Rs 766.90 so far during the day. The stock hit a record high of Rs 828.10 on 16 September 2014. The stock hit a 52-week low of Rs 320.45 on 25 September 2013.

The stock had outperformed the market over the past one month till 22 September 2014, rising 6.31% compared with 2.98% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 28.17% as against Sensex's 8.37% rise.

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

The board of CESC approved issuing equity shares/fully convertible debentures/partly convertible debentures/non-convertible debentures with warrants/any other securities (collectively referred to as 'QIP securities') to qualified institutional buyers (QIBs) on private placement bases in one or more tranches, at par or at such price or prices, and on such terms and conditions as may be determined later, provided that the aggregate amount to be raised by issue of QIP securities shall not exceed a sum of $150 million or rupee equivalent thereof.

The company will hold a general meeting of shareholders of the company for the above purpose on 18 October 2014.

Net profit of CESC rose 16.03% to Rs 152 crore on 30.23% rise 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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