CESC Ltd is going to consider a proposal to delist from the Calcutta Stock Exchange, drawing the curtains on the decade old association with the local bourse.
The board of the company will take a decision on the proposal on November 6, a move that indicates how the pandemic could nudge corporate houses to look hard at ways to trim the flab and lower the compliance burden to stay in shape.
Like many other companies that have registered offices in the city, CESC continued to remain listed on the CSE even as the shareholders questioned the rationale of doing so at every opportunity.
There has been no official trade at Lyons Range since 2013. The payment crisis that engulfed the Indian stock markets following the Ketan Parekh scam in 2000 rang the death knell for the bourse.
Old timers recall CESC — then a British company having pound sterling stock listed on both the London and Calcutta stock exchanges — used to be a hit among general investors. Often called by a shortened name — ‘Electric’ — as the company was then known as Calcutta Electric Supply Corporation Ltd, it was in a select class of stocks that had dual listing.
“Calcutta Electric Supply Corporation used to be a blue chip stock, popular because of its consistent dividend history,” said Ajit De, former president of CSE.
Registered in London on January 15, 1897 with a capital of £1,000, the company was first listed on London Stock Exchange. It debuted on CSE on March 3, 1957 to become one of the dual listed entities.
The British identity gave way to an Indian one in 1979, after which it was renamed as Calcutta Electric Supply Corporation (India) Ltd. The name was later changed to CESC Ltd in 1987. The company continued to remain listed on the London Stock Exchange till 2013.
“For years, there has been no dealing in our shares on the CSE. Hence we are seeking the approval of our board of directors for the proposed delisting. CESC shares will continue to be listed with the BSE and the NSE,” a CESC spokesperson said.
Gautam Ganguly, who used to be a company secretary in EIH and Kesoram, said some of the firms retained CSE listing on emotional grounds. “Being registered here, they had to be listed on CSE first. Only later they were listed on BSE and NSE,” he recalled.
“It used to be the largest stock exchange in the country, competition evenly with Bombay. The payment crisis of 2000 changed everything. I feel sad talking about it any more,” De signed off.
While CESC and host of other companies of the RP-SG Group, owned by Sanjiv Goenka and family, will seek delist, many other Calcutta-based companies continue to remain listed here, notable among them are ITC Ltd, EIH Ltd, Tata Consumer Products Ltd and Bata India Ltd.
