Scrip Watch, Free Modules

Tube Investments invests in CG Power

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

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: 

Excerpts from Gaurav’s Blog

Losers Focus on Winners – Winners Focus on Winning   Workshop Conceptualised & Conducted by GAURAV A PARIKH Stock Markets ~ Minting Millions ~ TOP 10 Winning Moves Grabbing Short Term Too While Compounding Long Term Post Pandemic lock-down, this is the First Fundamental Direct Equity ‘Value Vs Price’ Workshop in over Two and a Half Years by Gaurav Parikh and Jeena … Mumbai Equity Workshop ~ Saturday April 30 2022 ~ Almost Full ~ Top 10 Winning Moves Read More » The post Mumbai Equity Workshop ~ Saturday April 30 2022 ~ Almost Full ~ Top 10 Winning Moves first appeared on Gaurav's Blog. [...]

  Rest in Peace now Gerela Saab  ! Mr S T Gerela ex GM of BSE passed away peacefully this morning We had not met in years but he always remained at the top of my mind when it came to testimonials for this is what he had said to me over a decade ago,when … RIP S T Gerela ex GM BSE ~ gave me the best compliment till date Read More » The post RIP S T Gerela ex GM BSE ~ gave me the best compliment till date first appeared on Gaurav's Blog. [...]

Vedanta de-listing offer price Rs 87.50~Come on Mr Anil Agarwal ! Promoter Group of  Vedanta Ltd has proposed a voluntary de-listing at an indicative offer price of Rs 87.50~are the over 7.3 lakh minority shareholders from Alibag !? …apologies to the people of Alibag Some would term this as De-listing Duplicity ~ but I would … Vedanta de-listing offer price Rs 87.50~Come on Mr Anil Agarwal ! Read More » The post Vedanta de-listing offer price Rs 87.50~Come on Mr Anil Agarwal ! first appeared on Gaurav's Blog. [...]

This is a Riskless Reliance Industries Rights Investment Strategy for those over 2.3 Million Shareholders already holding RIL shares. It is not a recommendation to buy RIL cum rights  It’s a no brainer yet I’m just penning a brief note because some have told me they hold Reliance but are skipping the Rights ! Don’t … Riskless Reliance Industries Rights Investment Strategy Read More » The post Riskless Reliance Industries Rights Investment Strategy first appeared on Gaurav's Blog. [...]

 Wealth is negotiable, Health is not Your Personal Well Being is more important that the Stock Market Well Being ~ Always & more so in this unfathomable ongoing Covid-19 Reality Above’s a three minute reach out by me last night to all connected with me to reinforce this .It’s also posted on Facebook , … Covid-19 Crisis-Your Well Being is more important than Stock Market Well Being Read More » The post Covid-19 Crisis-Your Well Being is more important than Stock Market Well Being first appeared on Gaurav's Blog. [...]