CG Power and Industrial Solutions is making some waves today. The stock price rose over 6% to Rs.44.75 and continues to remain firmly in the green.
The news is that KKR, Yes Bank and BOI AXA might take control of the company, with Gautam Thapar, who owns Avantha group forced to cede control.
This news has emerged that after the company failed to repay its dues, KKR has converted its loans into equity, which in turn might also see Yes Bank and BOI AXA doing the same.
KKR holds about 10.8% stake in the firm, Yes Bank and BOI AXA, if their process goes through, will have a combined holding of 30% in CG Power. Thapar, prior to KKR’s equity conversion held 34.2%. But if all do convert, Thapar’s stake will come down to minority.
The news is also that creditors have also asked CG Power’s board to replace its director and group chief financial officer B Hariharan with former AstraZeneca top executive Narayan Seshadri as promoter-nominee.