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The RP-Sanjiv Goenka group flagship CESC Ltd is likely to announce restructuring in the third week of May.
According to market sources, the restructuring plan, which has been finalised, may be announced along with its fourth quarter results. Permission from the regulatory authorities is being sought in this regard.
The Group had appointed a consultant to explore restructuring possibilities whereby it may undertake the exercise of clubbing its generation and distribution businesses under two separate arms.
Currently, the CESC has distribution rights in Kolkata and owns part of generation units in West Bengal. The rest of the generation outfits and distribution franchises are managed by different wholly-owned subsidiaries.
The generation units at Haldia in Bengal and Chandrapur in Maharashtra are two separate outfits, Haldia Energy Ltd and Dhariwal Infrastructure Ltd (both subsidiaries of CESC).
Similarly, the group entered distribution franchise business through different companies.
CESC also owns Spencer’s Retail Ltd, the retail arm of the group. There were talks of bringing Spencer’s out of its fold.
When asked, Sanjiv Goenka, Group Chairman, cited regulatory guidelines and refused to comment or confirm the matter.
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