CG Power up nearly 5%, hits upper circuit
The company had hit its 52-week low of ₹8.30 on 27 AugustCG Power has hit upper circuit of 5% in the early trade
New Delhi: Shares of CG Power and Industrial Solutions is up nearly 5% after KKR India on Monday acquired a 10% stake in the company by invoking the pledge on shares provided as collateral for credit facilities extended to entities related to promoter Gautam Thapar.
At 12:25 pm, the company was trading at ₹15.69 surging 4.95% on BSE. CG Power has hit upper circuit of 5% in the early trade. On NSE, the stock is up 4.68% at ₹15.65. The company had hit its 52-week low of ₹8.30 on 27 August.
According to regulatory filing data, KKR India Debt Opportunities Fund II and KKR India Financial Services have acquired over 62.6 million shares in CG Power, from Vistra ITCL (India) Ltd. As on 30 June, Vistra ITCL held a 21.63% stake in the company.
In the next few days KKR may reveal its plan for the company, given that there is no identifiable management at the moment, after the board removed chairman Thapar and the chief executive officer (CEO) also put in his papers.
“KKR India Financial Services Ltd and KKR India Debt Opportunities Fund II have, in exercise of their rights in respect of credit facilities extended to Avantha Holdings Ltd and its subsidiary Salient Financial Solutions Ltd and through the enforcement of pledges created by Avantha Holdings Ltd, respectively, acquired 50,736,588 and 11,938,021 equity shares of CG Power and Industrial Solutions Ltd through a transaction on the stock exchange," the PE firm said in a statement on Monday.
This translates into a total of just under 10%, the PE firm said.
On 20 August, the board of CG Power and Industrial Solutions Ltd said the company will restate accounts after discovering “significant accounting irregularities" and governance lapses, sending its shares plunging by the maximum daily limit of 20%.
Thapar was removed from CG Power’s chairmanship on 30 August. The company’s board is considering selling non-core assets and exploring various fundraising avenues to deleverage the company and optimize its operations.
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