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CG Power hits 5% upper circuit after KKR India picks up 10% stake

The scrips were bought at an average price of Rs 14.25 apiece, amounting to a total of Rs 89.31 crore.

SI Reporter  |  New Delhi 

Top FPIs see modest rise in investment value amid sustained volatility

Shares of and Industrial Solutions hit an upper circuit band of 5 per cent at Rs 15.69 apiece on the BSE in the early morning deals on Tuesday, a day after private equity giant KKR India picked up nearly 10 per cent stake in the company for over Rs 89 crore.

As per the latest bulk deal data on the NSE, KKR India Debt Opportunities Fund II and KKR India Financial Services Ltd acquired a total number of over 6.26 crore shares or around 10 per cent stake in

The scrips were bought at an average price of Rs 14.25 apiece, amounting to a total of Rs 89.31 crore.

At 09:52 am, the stock was frozen at its upper circuit limit on the BSE. A total of 2,28,048 shares changed hands on the BSE and NSE till that time. In comparison, the benchmark S&P BSE Sensex was ruling at 36,999.71 levels, down 124 points or 0.33 per cent.

In a statement, the private equity major said its two entities have exercised 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. Subsequently, KKR India Financial Services and KKR India Debt Opportunities Fund II have respectively acquired 50,736,588 and 11,938,021 equity shares of through a transaction on the stock exchange, PTI reported.

CG Power, a leading player in the electrical equipment and engineering sector, is facing corporate governance issues in the wake of a financial fraud allegedly perpetrated by its promoter came to light.

In March, CG Power said creditors invoked 6.76 crore pledged equity shares, constituting 10.8 per cent of the company's share capital, held by Gautam Thapar-led Avantha Holdings.

The same month, Yes Bank acquired 8 crore shares or 12.8 per cent stake in CG Power on invocation of pledged shares of its promoter.

CG Power's board had removed Thapar as Chairman in August.

First Published: Tue, September 17 2019. 09:57 IST