Power utility CESC raising $150M through private placement

Kolkata-based private power generation and distribution company CESC Ltd, which also owns the group's retail business Spencer's, is looking to raise $150 million in equity funding through a private placement, as per a stock market disclosure.

The RP-Sanjiv Goenka group's flagship company will seek approval from its board in a meeting to be held on September 22, it said.

It disclosed neither the name of the proposed investors nor the reason for which it is raising the additional resources.

At the annual general meeting of the company in July this, the company's chairman Sanjiv Goenka said that CESC has appointed Boston Consulting Group to explore and advise verticals of power sector of the company to focus on.

He further added that 600 MW from its subsidiary Haldia Energy Ltd will commence by March 2015 and of this, 300 MW will be available by October this year.

Founded in 1978, CESC is engaged in mining coal, generation, transmission and distribution of power.

The firm also owns the group's retail arm Spencer's.

Shares of CESC were last trading at Rs 787.50 each, down 1.19 per cent on BSE in mid-day trades in a flat Mumbai market on Friday.

(Edited by Joby Puthuparampil Johnson)

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