CESC QIP oversubscribed, pricing by Nov 5

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The Qualified Institutional Placement (QIP) issue of CESC Ltd received bids worth USD 95- 97 million against the issue size of USD 80 million.
"The issue was oversubscribed and we had received bids totalling to USD 95-97 million. The QIP issue size was of USD 80 million," CESC sources told PTI.
Asked whether the company offered five per cent discount to the issue that closed today, the official said, "We have just received bids and pricing will be finalised in consultation with bankers by November 5."
The company had fixed a floor price of Rs 677.84 for the QIP issue. A discount of 5 per cent can be provided on the floor price of the equity shares at the discretion of CESC.

CESC did not confirm rumours that the company received several bids from overseas investors below the floor price in the wake the coal blocks crisis.
Asked whether CESC scaled down the issue size from USD 150 million, a CESC official said it was the upper limit, which the board had cleared.
The placement is happening in the backdrop of promulgation of the Coal Mines (Special Provisions) Ordinance.
CESC would not only lose two coal mines, one of which is operating, 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.