CG Power locked in upper circuit at Rs. 15.69

The stock of CG Power and Industrial Solutions (CG) jumped up nearly 5 per cent from its previous close and got locked in upper circuit at Rs. 15.69 apiece in BSE on Tuesday session. From its recent low of Rs. 8.3 apiece, the stock has gained nearly 90 per cent.

The market participants reacted positively after the news that KKR India Financial Services bought around 10 per cent stake in fraud-hit CG Power and Industrial Solutions (CG) for over Rs. 89 crore through open market transactions.

KKR India has bought a total number of over 6.26 crore shares in the company. Earlier, KKR along with other lenders (including Yes Bank) had invoked pledge to Avantha Group. Yes bank as on June 2019 ended quarter held 8,00,50,285 shares or 12.79 per cent of stake in CG Power.

Financial irregularities, unauthorised and undisclosed transactions had been reported in CG Power and Industrial Solutions, which had resulted in significant wealth erosion of investors’ wealth. The stock of CG Power had tanked nearly 72 per cent from its 52-week high of Rs. 55.

The stock had opened at Rs. 15.69 compared to previous close of Rs. 14.95 on BSE. The stock had hit intraday high of Rs. 15.69 and low of Rs. 15.69 on the BSE