CESC shares rose 10 percent to Rs 96.75 on the BSE in intraday trading on Friday after the 1:10 share split went into effect. The company’s board of directors had set September 17, 2021 as the record date for the division of shares in a ratio of 1:10, that is, an equity participation with the par value of Rs 10 which will be subdivided into 10 shares of capital with a nominal value. of Re 1 each.
Shares of the electric utility company surpassed its previous high of Rs 92.61 (adjusted for stock split) reached on January 11, 2018.
At 1:15 pm; The stock was trading 5.5% higher at Rs 93 on the BSE, compared to the 0.23% gain on the S&P BSE Sensex. A total of 14.24 million shares changed hands at the NSE and BSE counter. On average, the accountant used to witness transactions of less than 1 million shares before the stock split.
On the rationale for the stock split, CESC said the company intends to improve the liquidity of its shares in the stock market by reducing the par value of the shares through the subdivision process.
CESC is a flagship company of the RP-Sanjiv Goenka Group. With its own power generation facilities, it is engaged in the electricity distribution business in 567 square kilometers of its licensed area in Kolkata, Howrah, Hooghly, North and South 24 Parganas in West Bengal.
While the demand outlook has improved, CESC is taking steps to mitigate the risks associated with low sales volume. It is focusing on optimizing costs and increasing non-tariff revenues by taking advantage of its reach in the market. In the medium and long term, it also expects to benefit from increased adoption of electric vehicles and appliances, which it is actively promoting, the company said in its fiscal year 21 annual report.