CESC to be spilt into 4 companies

Kolkata
18 May 2017

R P Sanjiv Goenka Group chairman Sanjeev Goenka today announced restructuring of its flagship company CESC Ltd by splitting it into four entities but investors reacted negatively and shares tanked 15 per cent in the bourses.

Group chairman Sanjiv Goenka said CESC is being spilt into four companies by way of the demerger scheme of existing businesses for value unlocking and focused management into each of the verticals, subject to regulatory approvals. He said all the power distribution businesses of the group will now be under CESC Ltd, generation activity under CESC Generation, retail business Spencer's will be a seperate company and all non-power and non-retail ventures will be brought under an entity, the name of which is yet to be firmed up.

BPO, sports, FMCG and real estate will be bought under under the yet to be named entity. It will become the holding company for Firstsource Solutions, which is already listed. All the four entities will be listed and the effective date will be October 1.