CESC Arm Bags Projects Totalling 500 MW From Bhojraj Renewables, Inks Acquisition Deal

CESC Ltd. subsidiary, Purvah Green Power Pvt. Ltd., has signed a binding term sheet with Bhojraj Renewables Energy Pvt. for developing a 150 MW solar project and a 350 MW wind project.

Additionally, Purvah Green Power will acquire the entire shareholding of Bhojraj Renewables Energy Pvt. from its shareholders on a fully diluted basis, according to an exchange filing on Thursday.

This agreement involves securing connectivity approval, land acquisition, and obtaining the necessary permits for both projects.

The total cash consideration for this acquisition could reach up to Rs 108.56 crore, contingent upon the successful completion of specific project-related milestones within designated timelines.

This amount covers the purchase of 100% of BREPT's equity shares, along with the acquisition of land and the necessary permits and approvals to facilitate the projects.

Earlier on Aug. 21, Purvah Green Power Pvt. had incorporated three new companies—Ecofusion Power Pvt., Ecovantage Energy Pvt., and Vitalgreen Power Pvt.—to explore opportunities in the renewable power sector.

Shares of CESC closed 3.97% lower at Rs 193 apiece, compared to a 2.12% decline in the benchmark NSE Nifty 50.

It has risen 112.59% in the last 12 months and 46.01% on a year-to-date basis. The total traded volume so far in the day stood at 4.45 times its 30-day average. The relative strength index was at 64.59.

Of the 13 analysts tracking the company, 11 have a "buy" rating on the stock, one recommends a "hold," and one suggests a "sell,"  according to the Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 5.1%.