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CESC carries out restructuring, demerges into four companies

All four entities will be listed, the effective date to be October 1

Press Trust of India  |  Kolkata 

CESC

today announced restructuring of its flagship company by splitting it into four

Group chairman Sanjiv Goenka said CESC is being spilt into four by way of 'mirror image' demerger for value unlocking and focused management into each of the verticals.

He said all power distribution business of the group will be under CESC Ltd, all generation activity will be housed in CESC Generation, the retail business Spencer's will be a sperate company and all non-power and retail will be under CESC Ventures.

BPO company Firstsource, sports, and real estate will be bought under CESC Ventures.

All these four entities will be listed and the effective date will be October 1.

Goenka said, "The paid up capital of is Rs 132 crore but it has been increased to Rs 198 crore by way of gift or similar to bonus but cannot be termed as bonus. Shareholders will get additional value worth Rs 66 crore when they get fresh shares of the four demerged entities."

For each 10 shares of CESC Ltd, a shareholder will get five shares of Rs 10 each in generation, distribution, two shares in CESC Ventures and six shares in Spencer's (face value of Rs 5 each).

First Published: Thu, May 18 2017. 17:42 IST
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