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Shares of this flagship company of RP-Sanjiv Goenka Group in the business of electricity generation and distribution rose nearly 2 percent after an agreement to acquire a 100 percent stake in Deshraj Solar Energy Pvt. Ltd., a renewable energy company, through its subsidiary.
Share price variations:
With a market capitalization of Rs. 25,199.09 crores, CESC (NS:CESC) Ltd. rose to an intraday high of Rs. 190.87 representing a 1.8 percent increase from its previous closing price of Rs. 187.48 per share.
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Reason for the Rise:
According to exchange filings, CESC Ltd. through its subsidiary Purvah Green Power Pvt. Ltd., has agreed to acquire a 100 percent stake in Deshraj Solar Energy Pvt. Ltd., a renewable energy company focused on developing a 300 MW solar PV power plant in India and related activities. The acquisition will help CESC Ltd. expand its renewable energy business further.
Recent Acquisitions and Contracts
In October, the company acquired a 100 percent stake in Bhojraj Renewables Energy Pvt. Ltd., a renewable energy developer, for securing connectivity approval for a 300 MW wind project and 150 MW solar project for Rs. 108.56 crores.
In April, it acquired a 100 percent stake in Bhadla Three SKP Green Ventures Pvt. Ltd., which was developing a 300 MW renewable solar park in Nokh and Gelaba Camp Village, Rajasthan, for Rs. 3.84 crores.
In September, the company agreed with Ecoren Energy India Pvt. Ltd. to set up a wind power project of up to 686.85 MW through its subsidiary. The company aims to achieve 3 GW of hybrid renewable energy capacity over the next 4 to 5 years.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 5.43 percent to Rs. 388 crores compared to Rs. 368 crores in Q1FY24, while revenue from operations also marked an increase of 12.83 percent to Rs. 4,863 crores from Rs. 4,310 crores in comparison to the same period.
The company’s shares have delivered a 35.54 percent return over the past six months and a multi-bagger return of 113.80 percent in the past year.
About the company:
CESC is a flagship company of the RP-Sanjiv Goenka Group. It is India’s first fully integrated electrical utility company with private participation in the generation, transmission, and distribution of electrical power in Kolkata.
The company serves 44 lakh consumers across six locations in India, including domestic, industrial, and commercial users. It holds two distribution licenses in Kolkata and UP, along with four distribution franchises in Rajasthan and Maharashtra. Its power generation capacity is 2,140 MW as of Q1 FY25.
Written By: Joseph Pv
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