CESC is going to acquire a 23.18 per cent additional stake in Noida Power Company Ltd (NPCL) from promoter group entities for Rs 450 crore, turning the profit making electricity distribution venture a subsidiary of the company.
The RP-SG Group held a 72.73 per cent stake in NPCL while Uttar Pradesh government entity Greater Noida Industrial Development Authority held the balance 27.27 per cent. CESC Ltd directly held 49.55 per cent in the company, which started operations in 1993, while the rest was owned by two promoter group entities — Shaft Investment Pvt Ltd and Stel Holdings Ltd.
The decision adds one more dimension to the company’s stated decision to consolidate existing and future distribution businesses under Eminent Electricity Distribution Ltd, a wholly owned step-down subsidiary.
