CG Power extends gain; stock zooms 106% from 52-week low

The stock was up 6% to Rs 44.75, rallied 109% from its 52-week low of Rs 21.40 touched on February 14 on the BSE in intra-day trade

Shares of CG Power and Industrial Solutions were up 6 per cent to Rs 44.75 in intra-day trade on the BSE, extending its month-long gain, on report that KKR, Yes Bank and BOI AXA may take control of Avantha Group Company.

The stock has zoomed 109 per cent from its 52-week low of Rs 21.40 touched February 14 on the BSE in intra-day trade.

On March 8, the pledge on shares created by Avantha Holdings as a promoter in CG Power and Industrial Solutions, has been invoked by Vistra TCL (India), the Debenture Trustee, the company said in a regulatory filing on March 10. Vistra TCL (India) has invoked pledge created in its favour over a portion of the equity shares of CG Power and Industrial Solutions, being 67.69 million equity shares (of the aggregate number of 135.39 million shares pledged in favour), it said.

Although the pledge has been invoked, the Avantha Holdings will continue to have the right to require a re-transfer of the shares to itself upon repayment of the debt until the sale of the shares by the Debenture Trustee in which case any amounts received by Debenture Trustee over and above the outstanding amount of the debt will be payable to the Avantha Holdings, the company said in a regulatory filing.

According to a report in the Economic Times, the Gautam Thapar family may lose control of CG Power and Industrial Holdings after it defaulted on payments forcing private equity giant KKR to convert its loans into equity. Two other lenders, Yes Bank and BOI AXA, are in the process of doing the same in a move that will reduce the Thapar family to a minority, the report said.