CESC Subsidiary Secures INR 871 Crore Deal to Acquire Chandigarh Power Distribution

CESC Ltd.'s, a wholly-owned subsidiary, Eminent Electricity Distribution has secured Letter of Intent (LoI) for the acquisition of a 100 percent stake in a power distribution company in Chandigarh. The deal, valued at INR 871 crore, reinforces CESC’s standing as a key player in India’s power distribution sector.

It may be noted that CESC, part of the RP-Sanjiv Goenka Group, had emerged as the highest bidder for the Chandigarh power distribution tender in 2021. According to media reports, the privatisation bid faced opposition from trade unions, delaying the transaction for three years.

Recently, the Punjab and Haryana High Court dismissed a petition from the Chandigarh Power Department employees that challenged the privatisation process, paving the way for CESC to move forward with the acquisition.

CESC informed bourses that Eminent Electricity Distribution Ltd, a wholly owned subsidiary of CESC Ltd, has received a Letter of Intent for acquiring 100 percent shares in a distribution company responsible for electricity distribution and retail supply in the Union Territory of Chandigarh.

The acquisition is expected to be completed within 30 days from the issuance of the LoI, signaling rapid progress in finalising the transaction. This move aligns with CESC's broader strategy to expand its presence in India's power distribution sector, which already includes operations in Noida (Uttar Pradesh), Kota, Bikaner, Bharatpur (Rajasthan), Malegaon (Maharashtra), and Kolkata and Howrah (West Bengal).

The company reported a consolidated net profit of INR 353 crore in Q2 FY25, marking a 1.40 percent increase from INR 348 crore in Q2 FY24. Net sales rose 8 perccent year-on-year to INR 4,700 crore in Q2 FY25, reflecting strong operational performance.

By securing the Chandigarh power distribution contract, CESC further strengthens its  position in the Indian power sector.