Sanjiv Goenka, Chairman, CESCin an interview to CNBC-TV18 said the shareholder meeting to discuss the demerger is scheduled for December 15 and will be convened by NCLT. Now it depends on NCLT to give the final order and shareholders the consent because they already have got clearance from SEBI and stock exchanges.
Post this approval, the demerger would be effective from October 1, 2017.
The stock in the last year gained almost 70 percent on back of the demerger plans. The company plans to demerge into four businesses – power generation, power distribution, Spencer’s Retail, CESC Ventures.
Talking about the Spencer’s performance, Goenka said although it is consistently improving month on month and quarter on quarter, the Kerala and Bengaluru region are not doing well. However, October has been the first month of profit before tax (PBT) positive for Spencer’s, he said. They plan to aggressively grow in Bengal, UP and Andhra Pradesh but will grow sensibly and profitably, said Goenka.
“Apparels will be a major area of thrust because its a high margin business,” he said.