On Friday, April 11, shares of CESC Ltd. experienced a notable increase, closing up by 2.34% to reach Rs 153.35 per share on the Bombay Stock Exchange (BSE). This uptick in the stock price coincides with a significant financial move by the company, as its board has approved the issuance of non-convertible debentures worth Rs 250 crore to Axis Bank through a private placement.
Key Details on the Debenture Allotment
The board’s decision, made during a meeting on the same day, involves the allotment of 25,000 secured, unlisted, redeemable, rated non-convertible debentures. Each debenture has a face value of Rs 1 lakh, culminating in a total valuation of Rs 250 crore. This strategic financial maneuver aims to strengthen the company’s capital structure while offering investors a reliable investment option.
- Allotment Date: April 11, 2025
- Maturity Date: April 11, 2030
- Coupon Rate: 2.67%
- Call/Put Option: Available after three years at par value
Implications of the Debenture Issuance
According to the regulatory filing, should CESC Ltd. fail to make any scheduled payments under the terms of the debentures, an additional interest of 2% per annum will be imposed on the outstanding amounts, calculated above the stated coupon rate. This clause underscores the company’s commitment to meeting its financial obligations while protecting investors.
Stock Performance and Market Context
The positive movement in CESC Ltd.’s share price outperformed the broader market, where the Sensex index rose by 1.77%. This performance highlights investor confidence in CESC Ltd., particularly in light of the company’s proactive steps in securing funding for future projects.
Conclusion
CESC Ltd.’s latest financial strategy not only boosts its capital but also showcases its robust approach to maintaining investor trust and operational stability. As the company continues to navigate the evolving energy sector, these debentures may play a pivotal role in its future growth trajectory.
For further insights into CESC Ltd.’s financial health, be sure to explore the latest quarterly results which indicate a 6.3% decline in profit, amounting to Rs 282 crore.
