CESC Ltd arm increases stake in Noida Power Company Ltd to 72.73%

CESC Ltd had earlier announced about the decision of the Board of Directors of the Company to reorient and reorganize the power distribution business of the Company under Eminent Electricity Distribution Limited ('Eminent'), a wholly-owned subsidiary of the Company, Eminent has announced that its board of directors at the meeting held today has approved a proposal for acquisition of 23.18% of the equity share capital of Noida Power Company Limited (NPCL), an Associate Company of CESC.

Noida Power Company Limited, having its registered office at Electric Sub-station, Knowledge Park - IV, Greater Noida, Gautam Buddha Nagar, Uttar Pradesh - 201310 is an electricity distribution company, undertaking distribution and supply of electricity in the area of Greater Noida, Uttar Pradesh. Turnover of NPCL for the year ended 31/03/2020 was at Rs.1729.79 crores.

NPCL is an Associate Company of CESC and the acquisition of equity shares of NPCL by Eminent Electricity Distribution Limited ('Eminent') (a wholly owned subsidiary of CESC), from STEL Holdings Limited and Shaft Investments Private Limited, two group companies, are related party transactions on an arm's length basis.

The price at which the shares are being acquired is @ Rs.325 per NPCL share.

After the aforesaid proposed transaction, CESC's direct and indirect holding in NPCL will be 72.73%.

Shares of CESC LTD. was last trading in BSE at Rs.692 as compared to the previous close of Rs. 694.8. The total number of shares traded during the day was 55672 in over 3198 trades.

The stock hit an intraday high of Rs. 709.05 and intraday low of 687.15. The net turnover during the day was Rs. 38991641.

Source : Equity Bulls

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