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Shares of RP Sanjiv Goenka group’s demerged companies Spencer’s Retail and CESC Ventures, made a tepid debut on the bourses, on Friday.
Both Spencer’s Retail and CESC Ventures were carved out of the group flagship, CESC Ltd, post demerger.
While Spencer’s will be the retail arm of the group, CESC Ventures will house the other non-power businesses like real estate and IT that includes Firstsource Solutions Ltd.
CESC shareholders, who had 10 shares, received six shares of Spencer’s Retail of face value of ₹5 each under the scheme of arrangement.
While rest of the non-power businesses of CESC such as BPO, real estate and FMCG will be under CESC Ventures, and shareholders will receive two shares of ₹10 each (against every 10 shares of CESC).
Demerger Plans modified
CESC Ltd had originally planned to carve out four listed entities — power generation was to become a separate company, the power distribution the second firm, the retail division led by Spencer’s will be the third entity and its other businesses will merge to become the fourth company.
However, after the West Bengal Electricity Regulatory Commission sought more clarification on the demerger plan, the RP-Sanjiv Goenka Group decided to proceed with listing Spencer’s and CESC Ventures while keeping the power generation and distribution business under a single umbrella under CESC Ltd.
Tepid response
Shares of the retail business, Spencer’s Retail, closed at ₹212.80 on BSE after listing at ₹224. It hit a day’s high of ₹230. While, on NSE, the stock was closed at ₹213.75 after opening at ₹225.
Nearly, 33.37 lakh shares of Spencer’s was traded at BSE, while 217,384 shares were traded at the NSE.
CESC Ventures was listed at ₹545 on NSE and hit the day’s low of ₹517.75. On BSE, the stock was listed at ₹548 and was down to close at ₹520.60.
Around 937,399 shares were traded at the NSE, as against 4.21 crore at BSE.
Spencer’s Retail has a market cap of ₹1,692 crore on the listing date while CESC Ventures’ market cap is ₹1,380 crore, on BSE.
On the NSE, Spencer’s and CESC Ventures have a market cap of ₹850 crore and ₹686 crore.
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