The moment it opened for trade today morning, CG Power hit the 5% UC at Rs.14.04 and remained the top gainer on the BSE. The stock which has lost 68% in the last 12 months, made a tremendous climb back today.
The market is happy that the Securities Appellate Tribunal (SAT) has rejected an appeal filed by Gautam Thapar, Avantha Holdings and former officials of CG Power & Industrial Solutions Ltd. against an order by SEBI, which barred them from accessing the capital markets.
The SAT rejected the appeal as it “found no merit” in it. It also directed the appellants to approach SEBI to obtain all documents required by them to defend their case.
And the news today is that Board of CG Power is making moves to oust Gautam Thapar led Avantha Holdings as promoter of the company. As such the promoter entities old just 8574 shares in the company. Ouster cannot be done by the Board and it will have to approach SEBI for the same.
Gautham Thapar and CFO, VR Venkatesh have already been removed by the Board for their role in the fraud and its MD and CEO KN Neelkant resigned on Monday after being sent on leave since the alleged irregularities came to light.
There is also news that SBM Holdings, Sunil Mittal’s private firm is at reviving the company by bringing in working capital. It is aso said to be in talks with lenders for recasting the loans. SBM at the end of Q1FY21 held 8.3% stake in CG Power.
Thus hopes of revival and ouster of the tainted Board has renewed buying interest in the stock.