Multibagger wind power stock hit 52-week high as company entered into a binding term sheet for project up to 686.85 MW with Ecoren Energy India
The stock gave multibagger returns of over 150 per cent from its 52-week low of Rs 82.45 per share.
On Thursday, shares of CESC Ltd gained 3.25 per cent and made a new 52-week high of Rs 212.70 per share from its previous of Rs 206 per share. At the closing bell, shares of the company were trading at Rs 204.75 per share, down 0.61 per cent with a spurt in volume by more than 1.10 times on BSE.
CESC Ltd informed that Purvah Green Power Private Limited, a subsidiary of CESC Limited, has entered into a binding term sheet with Ecoren Energy India Private Limited, an unrelated Indian company which is neither a related party nor a part of the promoter or promoter group of the Company, dated September 19, 2024, for setting up wind power project of up to 686.85 MW (Project). The Project is likely to be commissioned within three years, subject to the receipt of the relevant licenses/ permits/ approvals from various authorities and carrying out various civil/electrical and other related works.
Purvah Green Power Private Limited has been 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.
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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 27,000 crore and has been maintaining a healthy dividend payout of 44.1 per cent. The stock gave multibagger returns of over 150 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.