CG Power slips on SFIO news

CG Power received a letter from the Serious Fraud Investigation Office (SFIO), informing it of the Central Government's order for an investigation by the SFIO into the company’s affairs and also of its fifteen related group companies.

This announcement came in as an update to the company’s disclosure made towards the end of November 2019, related to the investigation by the SFIO. A suspicious diversion of around Rs. 2,000 crores by certain directors and key managerial executives of the company was indicated. It was also noticed that there were alleged instances of funds being transferred to promoter Gautam Thapar’s Avantha Group. In a communication to the exchanges, the company stated that the said investigation is already under process and it will co-operate in every manner to enable SFIO in completing the investigation in a time bound manner.

Reacting to this news, on Tuesday during the early trading session, the stock of CG Power dropped down by 4.28 per cent or Rs. 0.50 per share and was seen trading at Rs. 11.90. The 52-week high is Rs. 47.35 and 52-week low is Rs. 8.25 on BSE.