Tube Investments invests in CG Power


Details on the Investment: 

Murugappa Group’s engineering firm Tube Investments picked up a controlling stake in CG Power & Industrial Solutions for Rs 700 crore.

CG Power has approved a proposal to issue shares and warrants on a preferential basis.

On 2nd September 2020, Tube Investments upped their investment by Rs 100 crs in the form 68.73 million equity shares of CG Power to be issued to TII at Rs 14.55 per equity share on a preferential basis. This will increase its stake to 58.58% 

Key Financial Data:

52 W H/L: 25/4.6

Market Cap: Rs 1558 crs

FV CMP Equity Capital Networth Total Debt Total Income PAT EPS BV
FY 20 2 25 125 -104 1661 5158 -2167 -34 -2
FY 19 125 2185 2729 8049 -507 -8 35


CG Power is engaged in engineering solutions and the power sector and has 13 manufacturing facilities.

The main reasons for losses in CG ower other than the loss from the Power Segment (Rs 222.3 crs)  are due to Exceptional Items (Rs 1788 crs) mainly A provision for a doubtful advancement for Rs 905 crs.  A (provision) of net assets of subsidiaries for Rs 468 crs and a  Liability on deconsolidation of HBE Group of Rs 341 crs. 

Brief History on the Fraud at CG Power: 

In August 2019, CG Power had reported a financial scam found in an investigation by an independent law firm where some employees had carried out unauthorised transactions, which led to an understatement of the liabilities of CG Power and advances to related and unrelated parties of the company and the group. The company said that total liabilities may have been potentially understated by Rs 1,053.54 crore for CG Power and Rs 1,608.17 crore for the whole group.

 As a result, the chairman of the group Mr Gautam Thapar was fired. 

Historical Price Chart: 

Daily Notifications as on 4th September 2020

1. Scrip code : 526817
Name : Cheviot Co.Ltd.
Subject : Corporate Action-Intimation of Buy back
Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, notice is hereby given that the Board of directors of the Company shall meet through audio-visual means on Tuesday, 8th September, 2020 at 11:30 A.M. to inter-alia consider the proposal for buy-back of ordinary shares of the Company and matters incidental thereto.

2. Scrip code : 532980
Name : Gokul Refoils and Solvent Limited
Subject : Corporate Action-Intimation of Buy back
Intimation of Letter of Offer

3. Scrip code : 541154
Name : Hindustan Aeronautics Limited
Subject : Announcement under Regulation 30 (LODR)-Offer for Sale
Offer of equity shares to the Eligible Employees of Hindustan Aeronautics Limited (“Company”) as per Department of Investment and Public Assets Management, Ministry of Finance, Government of India approval letter dated 31st August, 2020 – Employee Offer for Sale (“Employee OFS”)