The Hindu Business Line : Goenkas raise stake in CESC

Kolkata March 12 The allotment committee of the CESC board of directors on Friday last formally allotted a total of 20 lakh shares to two corporate bodies controlled by the Goenkas.

Conversion of 20 lakh equity warrants has inflated the promoter group's stake in CESC by 2.37 per cent of enhanced equity capital to 40.94 per cent.

Before conversion, the promoter group's stake in total paid-up capital was 39.50 per cent. In view of the enhancement of capital, the stake came down to about 38.57 per cent. The city-based Petrochem International Ltd and Universal Industrial Fund Ltd have been allotted 10 lakh shares each.

The conversion has increased the shares in issue to over 8.43 crore from 8.23 crore earlier.

The conversion of warrants saw allotment of shares of Rs 10 each at a premium of Rs 206.68 a share. According to Mr B.L. Chandak, Vice-President (Corporate Finance), RPG Group, there are no more outstanding warrants awaiting conversion.

Between December 31, 2005 and December 31, 2007 the promoters had raised their stake in CESC by about 1.5 percentage points. Consequent upon this allotment and enhancement of capital, the institutional holding in CESC would go down marginally from 43.58 per cent to 42.5 per cent.

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