CG Power and Industrial Solutions plans to sell non-core assets to deleverage and meet working capital requirements, Mint reported. The company is also focusing on reducing overall direct and overhead costs.
As per an August 28 investor presentation, the board is looking at disinvesting non-core assets including land in Kanjurmarg, and CG House. It is also looking at the feasibility of European and South-East Asian operations.
The company’s shares have fallen 80 percent since January. The shares lost 20 percent in a day on August 20 after reports surfaced that 'suspect' transactions had led to understatement liabilities by the company. The shares ended at Rs 9.55 on August 28.
Lenders had agreed to extend funds to the company subject to key management changes, as per a report by CNBC-TV18. Several changes on the board have been underway since then. Narayan Seshadri has been appointed as an independent director and Sudhir Mathur, who was an independent director, is now redesignated as a whole-time executive director. The company is also now controlled by several lenders, who invoked the pledged shareholding of promoters this year.
As of August 21, Yes Bank holds 12.79 percent in the company. HDFC Mutual Fund, Aditya Birla Sun Life Asset Management, Franklin Templeton and LIC are other major shareholders.
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