CG Power opened with a gain of 7% at Rs.30.70 and hit an intraday high of Rs.31, going up 8%. This was quite close to its UC of 10% at Rs.31.60.
The stock price has reacted positively to the news of it selling its land in Kanjurmarg, Mumbai for Rs.499 crore. This land houses the transformer manufacturing unit.
The deal was struck with Evie Real Estate Private and hopes to complete the sale on or before end of 2019.
The Board, as a pre-condition to the sale, also approved the closure or shifting of the said transformer manufacturing unit, which contributed 11.5% to the total revenue as at 31st Dec 2018.
Meanwhile the company is yet to declare its Q4 and FY19 results and the NSE and BSE imposed a fine on the company for non-compliance.
The company said that the re-classification exercise being carried out and consequent finalisation of financial statements was the reason for the delay. It is yet to announce a date for the earnings.