CESC Limited has completed the private placement of ₹250 crore in secured, unlisted, redeemable, and rated Non-Convertible Debentures (NCDs) by allotting the instruments to Axis Bank Limited. The Committee of the Board of Directors approved the allotment on August 5, 2026, finalizing a capital raising initiative initially notified on July 29, 2026, and structurally approved on August 3, 2026. This transaction secures long-term funding for the company while providing Axis Bank with a secured investment vehicle linked to market benchmarks.

The issuance comprises 25,000 debentures, each with a face value of ₹1 lakh, issued at par. The deemed date of allotment is August 5, 2026, aligning with the board’s approval date. The debt securities carry a floating coupon rate calculated as the 3-month Treasury Bill rate plus a spread of 2.60% per annum. Interest payments are scheduled monthly, offering regular income streams to the investor. The final maturity date is set for June 30, 2036, resulting in a tenure of nine years, ten months, and 25 days.

Key Terms of the Issue

The NCDs are secured by a first-ranking pari passu charge over CESC Limited’s immovable fixed assets via mortgage and movable fixed assets via hypothecation. The security cover is mandated to remain at 1.25 times the outstanding amount throughout the instrument’s life. Investors hold a call/put option at par exercisable at the end of three years from the deemed date of allotment. In the event of default on interest or principal payments exceeding three months, an additional interest of 2% per annum over the coupon rate becomes payable.

Redemption Schedule

Principal redemption begins modestly in FY28 and scales up significantly in the latter half of the tenure. This structure ensures manageable initial cash outflows for CESC Limited, with higher repayments concentrated between 2034 and 2036.

Regulatory Compliance

Jagdish Patra, Company Secretary & Compliance Officer, signed the disclosure filed with the National Stock Exchange of India Limited and BSE Limited under reference SEC: 1880/2026-27/141. This filing supersedes earlier communications dated July 29, 2026 (SEC: 1870/2026-27/131) and August 3, 2026 (SEC: 1876/2026-27/137), confirming the successful execution of the placement. The company has maintained transparency through sequential disclosures, ensuring stakeholders are informed of both the intent and the final execution of the debt issuance.

What This Means for Stakeholders

The successful allotment to Axis Bank Limited demonstrates strong institutional confidence in CESC Limited’s credit profile and asset quality. By opting for a floating rate structure, the company aligns its borrowing costs with prevailing market conditions, potentially benefiting if interest rates stabilize or decline. The substantial security cover and rated status provide Axis Bank with robust repayment certainty. For shareholders, this capital injection supports long-term infrastructure projects or refinancing needs without diluting equity ownership.

Purvah Green Power Private Limited, a subsidiary of CESC Limited , has incorporated five wholly owned companies to explore opportunities in the renewable power sector. The new entities were established on July 10, 2026, marking an expansion in the group's green energy portfolio through its intermediate holding company. CESC holds a 96.14% stake in Purvah Green Power.

The incorporation was disclosed to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing, signed by Jagdish Patra, Company Secretary & Compliance Officer, detailed the corporate structure and capitalization of the new subsidiaries. Each entity has been incorporated with a subscribed and paid-up capital of ₹1,00,000.

The five new companies are Purvah Sunrise Energy Private Limited, Purvah Sunlight Energy Private Limited, Purvah Future Energy Private Limited, Purvah Nextgen Energy Private Limited, and Purvah Sustainable Energy Private Limited. All entities fall under the renewable power industry and are classified as wholly owned subsidiaries of Purvah Green Power.

Details of New Subsidiaries

The primary object of these newly incorporated entities is to explore opportunities within the renewable power sector. As these are newly formed companies, turnover figures and specific acquisition costs were not applicable at the time of filing. No additional governmental or regulatory approvals were required for the incorporation of these entities.