Private sector lender YES Bank has acquired 12.8 per cent stake in CG Power and Industrial Solutions on invocation of pledged shares of its promoter.
“YES Bank has, pursuant to invocation of pledge of shares, acquired over 8 crore equity shares having nominal value of ₹2 per share, constituting 12.79 per cent of the post-issue paid-up share capital as at March 31,... of CG Power and Industrial Solutions,” it said in a regulatory filing on Tuesday.
Shares were acquired on invocation of pledge due to default of loan terms by Oyster Buildwell, which is a group company of Gautam Thapar-led Avantha Group. It will be used to reduce the loans secured by such shares, YES Bank added.
CG Power and Industrial Solutions is one of the largest players in the country in the electrical equipment and engineering industry. It operates in power systems and industrial systems and its manufacturing base is spread across 22 locations in five States-- Goa, Gujarat, Karnataka, Maharashtra and Madhya Pradesh. It also has manufacturing facilities in Belgium, Canada and USA. Its consolidated revenue was ₹6,287.54 crore as on March 31, 2018.
Mixed fortunes
CG Power and Industrial Solutions has been facing mixed fortunes and is reported to have defaulted on loan payments. In an earlier filing in March this year, it had informed the stock exchanges that Vistra ITCL on behalf of debenture holders, including KKR India Financial Services, had invoked 6.76 crore pledged equity shares amounting to 10.8 per cent of its share capital, held by one of its promoters Avantha Holdings.
As of March 31, promoter groups, including Avantha Holdings, Varun Prakashan and Avantha Reality, held 12.79 per stake in CG Power. Vistra ITCL holds 21.63 per cent equity in the company.
A report by domestic brokerage Kotak Institutional Equities had on Tuesday said that 100 per cent of the promoter shareholding in CG Power was pledged as of March 31 this year.
On Tuesday, the shares of CG Power and Industrial Solutions fell 2.8 per cent and closed at ₹36.50 apiece on the BSE, while YES Bank scrip fell 1.05 per cent and ended the day at ₹164.55.