CG Power and Industrial Solutions Limited approves infusion of Rs. 100 crore by Tube Investments of India Ltd at Rs. 14.55 per share

The Board of Directors (Board) of CG Power and Industrial Solutions Limited at their meeting held on 7 August 2020 had approved the execution of a securities subscription agreement dated 7 August 2020 ("SSA") with Tube Investments of India Limited ("Subscriber" or "Prospective Investor") for the issuance and allotment of 64,25,23,365 equity shares of the Company and 175,233,645 warrants of the Company on a preferential allotment basis ("Original Offer").

Subsequent to the execution of the SSA and on further assessment of financial liabilities and outlook of the Company by the Subscriber, the Company has received a letter dated 30 August 2020 from the Subscriber indicating their offer to infuse additional capital in the Company aggregating up to INR 100 Crore (Rupees One Hundred Crore Only) (approximately) by way of subscribing to additional equity shares of the Company on a preferential allotment basis ("Additional Offer"), to meet the Company's funding requirements for meeting the Company's liabilities, stabilizing its operations and improving its liquidity position. The Board of the Company at their meeting held today, have considered and approved the Additional Offer, and consequently, execution of an amendment agreement to the SSA (SSA Amendment) with the Subscriber dated 2 September 2020 for the further issuance and allotment to the Prospective Investor on a preferential basis ("Preferential Allotment") of 68,728,522 equity shares of the Company of face value of INR 2/- each ("Equity Shares") at a price of INR 14.55/­ (including premium) per Equity Share aggregating up to INR 99,99,99,995.10 (Indian Rupees Ninety Nine Crores Ninety Nine Lakhs Ninety Nine Thousand Nine Hundred Ninety Five decimal Ten Only), in compliance with Regulation 164A and other applicable provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations") and other applicable laws.

Post allotment of securities pursuant to the Original Offer, Tube Investments will acquire control over the Company and will have the right to appoint a majority of the director on the board of the Company. As such, pursuant to the completion of the allotment of Equity Shares pursuant to the Additional Offer (which is the subject matter of this disclosure), there will be no further change in control.

Shares of CG Power and Industrial Solutions Ltd was last trading in BSE at Rs.21.55 as compared to the previous close of Rs. 22.68. The total number of shares traded during the day was 12597789 in over 3107 trades.

The stock hit an intraday high of Rs. 23.8 and intraday low of 21.55. The net turnover during the day was Rs. 297551997.

Source : Equity Bulls

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