CESC offers QIP shares at a discount

City based RP-Sanjiv Goenka group's flagship company, CESC Ltd, today offered equity shares at a discount at Rs 644 against the floor price of Rs 677.84 apiece to qualified institutional investors.
The decision came after the company reportedly received tepid response from overseas investors in the recently concluded Qualified Institutional Placement (QIP).
The company today announced the placement of 76,21,118 (approx 3.5 per cent of total capital) equity shares of Rs 10 each at Rs 644 to eligible institutional buyers in an issue that closed on October 29.
However, the company officials declined to comment, on whether it received several bids from overseas investors below the floor price in the wake of the coal block hurdle.

CESC Ltd had received bids worth USD 95-97 million against the issue size of USD 80 million.
The issue had provision of discount of 5 per cent that can be provided on the floor price of the equity shares at the discretion of CESC.
The placement happened in the backdrop of promulgation of the Coal Mines (Special Provisions) Ordinance.
CESC would not only lose two coal mines, one of which is operational, it would also have to pay Rs 97 crore as penalty payable under the Supreme Court order for all the coals mined from these mines till date, according to the disclosure made in the placement document.