In our view, CESCs demerger plan will lead to substantial value unlocking. The move would bring with it benefits like (1) Isolation of cash flows of the Power vertical from other businesses (one of the investors? key concerns) and (2) The opportunity to invest in a pure-play power distribution business, with steady cash flows and growth. Losses incurred by Spencers were the key hurdle for this demerger, in our view.