CESC Limited, through its wholly-owned subsidiary Eminent Electricity Distribution Limited (EEDL), has acquired 100% equity shares of Chandigarh Power Distribution Limited (CPDL) for a cash consideration of ₹871 crore. The acquisition follows the notification of the Chandigarh Electricity Reforms Transfer Scheme, 2025, which transfers the assets, liabilities, and personnel of the Electricity Wing of the Engineering Department, Chandigarh (EWEDC), to CPDL, effective February 1, 2025.
Key details of the acquisition:
- Acquirer: Eminent Electricity Distribution Limited (EEDL), a wholly-owned subsidiary of CESC
- Target: Chandigarh Power Distribution Limited (CPDL)
- Sector: Power distribution and retail supply
- Acquisition Amount: ₹871 crore
- Percentage of Shares Acquired: 100%
- Acquisition Completion Date: February 1, 2025
Objective and Strategic Impact:
The acquisition aligns with CESC’s goal of expanding its power distribution business across India. By gaining full control of CPDL, CESC enhances its presence in the northern region and strengthens its portfolio in the power distribution segment.
CPDL, incorporated on April 23, 2022, will begin its business operations upon completion of the transaction. The company holds a distribution license under the Electricity Act, 2003, and is responsible for providing reliable electricity supply to the Union Territory of Chandigarh.
The acquisition received the necessary approvals from the Administration of the Union Territory of Chandigarh, and the share purchase agreement was executed accordingly.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult a financial advisor before making any investment decisions
