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L&T Finance transfers 9.9% CG Power stake, valued Rs 87.5 cr, to itself

The shares were transferred from Vistra ITCL, which was earlier acting as the trustee for L&T Finance stake in CG Power

Amritha Pillay  |  Mumbai 

Power line

on Monday bought a 9.9 per cent stake in and Industrial Solutions (CG Power) from Vistra ITCL, which was earlier acting as the trustee for shares in the company.

The 9.99 per cent stake purchased by 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 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.

First Published: Mon, November 04 2019. 21:26 IST