Multibagger Wind Power Stock To Keep Under Radar As Company Enters Into A SPA For Acquisition Of 100 Per Cent Stake Of Deshraj Solar Energy Private Limited
The stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 82.45 per share.
On Monday, shares of CESC Ltd gained 2.13 per cent to an intraday high of Rs 189.50 per share from its previous of Rs 185.55 per share. At the closing bell, shares of the company were trading at Rs 187.4 per share, up 1 per cent.
Purvah Green Power Private Limited (PGPPL), a subsidiary of CESC Limited, has announced the acquisition of Deshraj Solar Energy Private Limited (DSEL). DSEL is a renewable energy company developing a 300 MW solar power plant in India. This acquisition aligns with CESC's strategy to expand its renewable energy portfolio. The deal is expected to be completed within two days through a 100% cash transaction. Post-acquisition, DSEL will become a step-down subsidiary of CESC Limited.
Additionally, Purvah Green Power Private Limited has incorporated a new wholly-owned subsidiary named JSK Renewable Private Limited. This subsidiary will focus on exploring opportunities in the renewable power sector. JSK Renewable Private Limited has an initial subscribed and paid-up capital of Rs 1,00,000. As a wholly owned subsidiary, Purvah Green Power Private Limited holds 100 per cent of its shares.
Earlier, Purvah Green Power Private Limited was awarded a Letter of Award (LoA) by CESC Limited to establish a 300 MW Solar PV Power Project. The project, which will be executed domestically, comprises 150 MW connected to the Indian Southern Regional Grid and an additional 150 MW under a Greenshoe option. The power purchase agreement will have a 25-year duration. The project's commercial value is significant due to its 300 MW capacity. Notably, Purvah is a subsidiary of CESC Limited, making this a related party transaction. However, the project was awarded through a competitive bidding process and is conducted on an arm's length basis, ensuring fair market practices.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
About the Company
CESC Ltd is a leading Indian electrical utility company with a comprehensive portfolio spanning generation, transmission and distribution. It operates in West Bengal, serving over 3.4 million consumers. CESC owns and operates thermal power plants, including Budge Budge Generating Station and Southern Generating Station, with a combined capacity of 885 MW. Additionally, it has commissioned the Haldia Thermal plant (600 MW) and has a presence in renewable energy through solar power plants in Gujarat and Tamil Nadu. The company's distribution network extends across Kolkata, Greater Noida, Rajasthan and Chandigarh, encompassing EHV, HV and LV lines, substations and distribution stations. CESC also holds a joint venture with Noida Power Company Limited, securing exclusive power distribution rights for the Kolkata and Greater Noida regions.
The company has a market cap of over Rs 24,000 crore and has been maintaining a healthy dividend payout of 44.1 per cent. The stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 82.45 per share. Investors should keep an eye on this wind power stock.
Disclaimer: The article is for informational purposes only and not investment advice.