CG Power stock was in news yesterday, for wrong reason, when Media was highlighting half factual news of CBI raid at CG House at Prabhadevi, Mumbai. This CBI raid was in respect to misappropriation by its ex promoter Gautam Thapar. But this fact was hidden by Media, for reasons best known to them. Either ignorance and lethargy of not doing proper research or to help big fish buy stock.
Note 3 of Audited accounts of the company for FY 2020-21 clearly refers to this matter, which read as under-
3.The following are the updates in relation to the ongoing investigations, regulatory and recovery actions:
a) Reopening of books of accounts and recasting of financial statements and audit thereof (the 'recasting exercise'), by the firms of Chartered Accountants appointed pursuant to NCLT order is in progress and is expected to be completed during the financial year March, 2022.
b) The Company has filed a suit for recovery against identified erstwhile promoter (AHL) affiliate company, former Directors connected with the erstwhile promoter group and former KMPs for recovery of sum of INR 1,416.07 crore (principal INR 727.07 crore together with damages aggregating INR 689 crore) and three suits are filed by the Company towards the loss caused to Company's subsidiary, CGPSOL for sum of INR 1,709.46 crore (principal INR 1,153.24 crore together with interest aggregating INR 556.22 crore). The suit are pending disposal before Bombay High Court.
c) The Company submitted a detailed representation to Ministry of Corporate Affairs seeking its help to recover the various amounts due to the Company from various entities belonging to the earlier promoter group. Acting on the representation, the Ministry has filed a Petition in NCL T Mumbai seeking various reliefs in this regard.
So, this CBI investigation can give a fund flow of a maximum of Rs. 3,125 crore, to CG Power, which will be a moolah to new promoter Murugappa Group.
Maybe, Media will highlight this once BIG Fish acquire a large chunk, which may get sold by the fearful gullible investors.
Media playing Dirty Game is not new now for the members here.
This is not a buy or sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.