CG Power approves ₹100 cr by Tube Investments

 

Murugappa Group led Tube Investments of India will take control of CG Power and Industrial Solutions after the board of the company approved the offer of additional investment of Rs. 100 crores.  

In a regulatory filing on September 2, 2020, CG Power stated that it received a letter dated August 30 from Tube Investments of India which denoted their offer to infuse a surplus capital of Rs.100 crores. Murugappa Group has made this offer to CG Power to help it meet its liabilities, stabilize its operations and improve its liquidity.

CG Power in its filing stated, “We hereby inform you that the Board of the Company at its meeting held on September 2, 2020 has inter-alia considered and approved the additional offer, and consequently, execution of an amendment agreement to the SSA with the subscriber dated September 2 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.

Tube Investments of India had emerged as the successful bidder following a Swiss challenge bidding process initiated by the lenders to CG Power. Earlier, the board of CG Power had approved an investment of Rs. 700 crore by Tube Investments for a 56.61% stake.