CG Power and Industrial Solutions is among the leading players in the electrical equipment and engineering sector.
Private equity giant KKR India on September 16 picked up nearly 10 per cent stake in CG Power and Industrial Solutions for over Rs 89 crore by enforcing pledge on credit facilities extended to a promoter firm of the crisis-hit company.
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 percent stake in CG Power.
The scrips were bought at an average price of Rs 14.25 apiece, amounting to a total of Rs 89.31 crore.
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 CG Power through a transaction on the stock exchange, the statement said.
"This translates into a total percentage of 9.9999992 percent -- just under 10 per cent," KKR said.
On the NSE, shares of CG Power and Industrial Solutions Monday touched its upper circuit to end at Rs 14.95 apiece, up 4.91 percent over the previous close.
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 percent 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 percent stake in CG Power on invocation of pledged shares of its promoter.
CG Power's board had removed Thapar as Chairman in August.The Great Diwali Discount!
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