CG Power board okays Rs 100 cr additional infusion by Tube Investment

Mumbai (IANS) The Board of CG Power and Industrial Solutions has approved the offer of additional investment of Rs 100 crore by Tube Investments.

In a regulatory filing on Wednesday, CG Power said that it had received a letter dated August 30 from Tube Investments of India indicating their offer to infuse additional capital in the company aggregating up to around Rs 100 crore by way of subscribing to additional equity shares of the company on a preferential allotment basis.

Murugappa-Group led Tube Investments which will take up control of the company, has offered additional investment to help the company meet its liabilities, stabilising its operations and improving its liquidity position.

"We hereby inform you that the Board of the Company at their meeting held today, have inter-alia considered and approved the Additional Offer, and consequently, execution of an amendment agreement to the SSA with the Subscriber dated 2 September 2020 for the further issuance and allotment to the Prospective Investor on a preferential basis of 68,728,522 equity shares of the company of face value of Rs 2 each at a price of Rs 14.55 aggregating up to Rs 99,99,99,995.10," the filing said.

Shares of CG Power surged on Wednesday and are currently trading at Rs 22.60, higher 4.87 per cent from the previous close.