CESC Limited, a major player in India’s power distribution sector, has strengthened its market presence with a significant acquisition. Its wholly owned subsidiary, Eminent Electricity Distribution Limited (EEDL), has successfully acquired Chandigarh Power Distribution Limited (CPDL), marking a strategic expansion in the power sector.
Share price of CESC made an intraday high of ₹145.29 on NSE. At 1:45 PM, the stock price was down by 2.29 as on February 1, 2025.
The acquisition follows the Chandigarh Electricity Reforms Transfer Scheme, 2025, which mandates the transfer of assets, liabilities, and personnel of the Electricity Wing of the Engineering Department, Chandigarh (EWEDC), to CPDL. This transition is set to take effect from February 1, 2025.
With this acquisition, CPDL will now operate under EEDL as a wholly owned subsidiary, making it a step-down subsidiary of CESC Limited.
The transaction has received the necessary approvals from the Administration of the Union Territory of Chandigarh, and the execution of the share purchase agreement finalises the process.
CPDL was incorporated on April 23, 2022, and is licensed by the Joint Electricity Regulatory Commission under the Electricity Act, of 2003. It is responsible for the distribution and retail supply of electricity in the Union Territory of Chandigarh. With this transition, CPDL will officially commence business operations as a subsidiary of EEDL.
CESC has a long-standing presence in India’s power distribution market, and this acquisition aligns with its broader strategy of expanding its distribution footprint. The inclusion of Chandigarh into its portfolio strengthens its position as a key player in the regulated power distribution business.
This move also comes as part of India’s ongoing power sector reforms, which aim to enhance efficiency, ensure better service delivery, and attract private sector investment in electricity distribution.
With the acquisition now formalised, CPDL will be integrated into CESC’s operational framework, ensuring a smooth transition of services for consumers in Chandigarh. The transfer of EWEDC’s assets, liabilities, and personnel to CPDL ensures continuity in service delivery.
Given that no related party transactions are involved, this acquisition stands as an independent expansion move by CESC, solely aimed at enhancing its distribution business.
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Published on: Feb 1, 2025, 3:39 PM IST
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