CG Power approves securities subscription agreement with Tube Invt; stk up

Shares of CG Power and Industrial Solutions hit a 5 per cent upper circuit limit of Rs 10.99 apiece on the BSE on Friday after the company informed that its board has approved the execution of a securities subscription agreement (SSA) with Tube Investments of India for the issuance and allotment of securities to it on a preferential basis. 

"We hereby inform you that the Board of Directors (the "Board") of the Company at their meeting held today have inter-alia considered and approved the execution of a securities subscription agreement with Tube Investments of India Limited ("Prospective Investor") dated 7 August 2020 ("SSA") for the issuance and allotment of following securities to the Prospective Investor on a preferential basis ("Preferential Allotment"), " CG Power said in an exchange filing on Friday. 

At 02:24 PM, CG Power stock was frozen at 5 per cent upper circuit limit while Tube Investments of India was trading nearly 5.5 per cent higher at Rs 537.20. In comparison, the benchmark S&P BSE Sensex was trading flat at 38,004.46, down 0.06 per cent.

According to a Business Standard report dated February 13, 2020, CG Power's board battle led to value destruction for its shareholders. "A report by InGovern Research Services has raised several questions on the role of the board, banks, and private equity firm KKR India. “Banks and non-banking financial companies seem to have been fully cognizant of the situation in the company and other group companies and yet continued to fund and increase group company exposures against guarantees of the listed company,” the report had said. READ MORE

In July, private sector lender YES Bank had sold 2.66 per cent stake held in the company. 


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel