You are here: Home » News-CM » Companies » News
Business Standard

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.

Powered by Capital Market - Live News

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

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

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