CESC gets board nod to raise $150m

To fund retail rollout and create new power generation capacities

KOLKATA: CESC Ltd, RPG Enterprises’ power utility and retailer, will raise up to $150 million through fresh issue of equity to part-fund its investments in retail and create new-generation capacities as an independent power producer.

The committee of directors constituted by the CESC board at on Tuesday decided to re-organise its authorised share capital by creating 28.25 million equity share of Rs 10 each and simultaneously cancel 28.25 million cumulative re-deemable preference share of Rs 10 each.

The company has informed the stock exchanges about a domestic and international offering of issue of shares to Indian financial institutions, the public and corporate bodies through public issue or private placement with the total issue not exceeding $150 million or its rupee equivalent.

The total capex riding on capacity creation is slated to be Rs 5,050 crore while another Rs 1,200 crore will be put into rolling out Spencer’s retail stores across the country.

Sanjiv Goenka, vice-chairman, CESC, had told DNA Money that power investments would be funded with a debt: equity of  1:2.3 and such equity could be in form of QIPs, private placement or even a follow-on issue.

In retail business segment, the funding would be through a mix of debt and equity in 1:1 ratio and the equity contribution of Rs 600 crore was not too large to be a big issue.