CESC Limited Acquires 63.91% Stake in Purvah Green Power for ₹205 Crore

CESC Limited has announced a strategic acquisition that significantly enhances its footprint in the renewable energy sector. The company has acquired a 63.91% equity stake in Purvah Green Power Private Limited (Purvah), making Purvah a direct subsidiary of CESC Limited. Prior to this acquisition, Purvah was a wholly-owned subsidiary of Crescent Power Limited, which itself is a subsidiary of CESC Limited.

Purvah, established on December 21, 2023, in West Bengal, India, focuses on generating, trading, and dealing in electrical energy using renewable sources. The acquisition aligns with CESC Limited’s strategy to expand its renewable energy business and strengthen its position in the power sector.

The acquisition involves CESC Limited subscribing to 20,50,00,000 equity shares of Purvah, each with a nominal value of ₹10, totaling an aggregate consideration of ₹205 crore. This transaction has been conducted on an arm’s length basis, ensuring that it meets standard commercial practices and regulatory requirements.

By integrating Purvah directly into its portfolio, CESC Limited aims to leverage the growth opportunities in the renewable energy market. This move is expected to enhance the company’s capabilities in the generation and distribution of clean energy, contributing to its sustainability goals and overall business growth.

The acquisition reflects CESC Limited’s commitment to expanding its renewable energy footprint and supporting the transition to a more sustainable energy future. As the energy sector evolves, CESC’s strategic investments in renewable resources are poised to strengthen its market position and drive long-term value creation.

In summary, this acquisition marks a significant milestone for CESC Limited, reinforcing its dedication to renewable energy and positioning it to capitalise on emerging opportunities in the sector.

On July 30, 2024, the share price of CESC Ltd opened at ₹169.98, touching the day’s high at ₹177.60, as of 10:47 AM on the NSE.

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