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Tube Investment of India acquires 50.62% stake in CG Power

Capital Market 

With effect from 26 November 2020

Tube Investments of India announced that in terms of the securities subscription agreement, the Board of CG Power & Industrial Solutions at its meeting held on 26 November 2020 has allotted the following securities to Tube Investments of India :

(a) 64,25,23,365 (Sixty Four Crore Twenty Five Lakh Twenty Three Thousand Three Hundred Sixty Five) equity shares of the face value of Rs.2/- (Rupees Two only) each (Equity Shares) at a price of Rs.8.56/- (Rupees Eight decimal Five Six only) (including premium) per Equity Share, for an aggregate consideration of Rs.550,00,00,004/- (Rupees Five Hundred Fifty Crore and Four only); and

(b) 17,52,33,645 (Seventeen Crore Fifty Two Lakhs Thirty Three Thousand Six Hundred Forty Five) warrants (Warrants), each carrying a right exercisable by the Company as the Warrant holder to subscribe to 1 (one) Equity Share per Warrant within 18 (eighteen) months from allotment, for a subscription amount of Rs.37,50,00,000.25 (Rupees Thirty Seven Crore Fifty Lakh decimal Two Five), being 25% (twenty five per cent) of the aggregate consideration payable for subscribing to Equity Shares upon exercise of the Warrants.

Consequent to the aforesaid allotment of Equity Shares, the Company has acquired a controlling interest and holds 50.62% (fifty decimal six two per cent) of the issued, subscribed and paid up equity share capital of CG Power and that CG Power has, therefore, become a subsidiary of Tube Investments of India, with effect from today i.e. 26 November 2020.

Further, with effect from today i.e. 26 November 2020, the Company, viz. Tube Investments of India, has been classified as the 'promoter' of the CG Power and the board of directors of CG Power has been reconstituted pursuant to the terms of the Subscription Agreement.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, November 26 2020. 18:29 IST
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