CG Power and Industrial Solutions was locked an upper circuit limit of 5% at Rs 15.69 after private equity (PE) firm KKR acquired a 10% stake in the company.
As per reports, the stake acquisition came after KKR invoked the pledge on shares provided as collateral for credit facilities extended to the entity.
KKR acquired 6,26,74,609 shares of the company which translates to 10% stake in the firm. The shares were sold by Vistara ITCL (India). The shares exchanged hands at an average price of Rs 14.25.
KKR India Financial Services acquired 5,07,36,588 shares or 8.10% stake while KKR India Debt Opportunities Fund II acquired 1,19,38,021 shares or 1.90% stake.
On 22 March 2019, the company informed that Vistara ITCL (India) had invoked pledge on 6,76,96,248 shares, constituting 10.8% of paid-up equity share capital, created by the company's promoter, Avantha Holdings.
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Vistara ITCL (India), the debenture trustee of Avantha Holdings, had invoked the pledge on behalf of debenture holders namely L&T Finance.
Meanwhile, the S&P BSE Sensex was down 144 points or 0.39% to 36,978.99.
On the BSE, 28924 shares were traded in the counter so far compared with average daily volumes of 42 lakh shares in the past one quarter. The stock hit a high of Rs 15.69 and a low of Rs 15.69 so far during the day.
The stock hit a 52-week high of Rs 55.5 on 14 Sep 2018. The stock hit a 52-week low of Rs 8.25 on 27 Aug 2019.
The scrip has underperformed the market in past one year, sliding 72.67% as against 1.23% fall in the Sensex.
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