 "L&T Finance transfers 9.9% CG Power stake, valued Rs 87.5 cr, to itself")
L&T Finance on Monday bought a 9.9 per cent stake in CG Power and Industrial Solutions (CG Power) from Vistra ITCL, which was earlier acting as the trustee for L&T Finance shares in the company.
The 9.99 per cent CG Power stake purchased by L&T Finance was valued at Rs 87.5 crore, according to bulk deal data available with exchanges.
“Shares were held by Vistra, as trustees for L&T Finance. L&T Finance has transferred them unto itself from Vistra, which were hitherto held as collateral,” a spokesperson for L&T Finance said in response to an email query.
In September, KKR bought a 10.01 per cent stake in CG Power in a similar transaction. KKR India Debt Opportunities Fund II and KKR India Financial Services bought that stake in CG Power from Vistra ITCL. Vistra was also acting a trustee for KKR, among other holders.
CG Power in August informed exchanges of a Risk and Audit Committee (RAC) report which detailed multiple dubious transactions at the company. The report indicated it to be an employee-led fraud. Following this, the Securities Exchange Board of India (Sebi) passed an interim order in September barring Gautam Thapar and some other key officials of CG Power from the securities market.
According to details available in the Sebi report on the company, YES Bank and Bharti SBM Holdings were among other non-promoter shareholders in the company as of June 2019.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%