Private lender Yes Bank has exited CG Power and Industrial Solutions Ltd (CG Power) by selling its entire stake-holding in the company, the bank said on August 19.
Yes Bank has sold 6,34,00,000 equity shares having nominal value of Rs 2 each, constituting 10.12 percent of the share capital of CG Power in various tranches, last being on August 18, 2020, the private sector lender said in a regulatory filing.
"It may be noted that the bank has sold entire shares held by the bank and after the aforesaid disposal of shares, the bank now holds nil shares of CG Power," Yes Bank said.
On July 7, the lender had sold 1,66,50,000 shares, constituting 2.66 percent of the paid-up share capital of CG Power.
In May 2019, Yes Bank had acquired 8,00,50,000 equity shares, constituting 12.79 percent shares in CG Power pursuant to invocation of pledge of shares.
"Shares have been acquired pursuant to invocation of pledge of shares of CG Power subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Oyster Buildwell Pvt Ltd (borrower), which is a group company of Avantha Group," Yes Bank had said in a regulatory filing in May last year.
The proceeds from the sale of shares will be utilised to reduce the bad loans secured by such shares, it had said.
CG Power, an Avantha Group company, is one of the largest players in India in the electrical equipment and engineering industry.
Yes Bank shares closed 4.99 percent up at Rs 15.78 apiece on BSE. CG Power ended 4.98 percent higher at Rs 15.39 per share.