CG Power shareholders vote to declassify Thapar as promoter

Murugappa group to invest Rs700 cr

– The AGM resolution said Thapar’s promoter group firms’ shareholding in CG Power was just 0.002% (8,574 shares out of total of 62.67 crore shares)

– CG Power Board has agreed to an offer made by Murugappa group firm Tube Investments of India Ltd to invest Rs700 crore in the company which will give the much-needed working capital to the power equipment maker

New Delhi, October 21

Shareholders of fraud-hit CG Power and Industrial Solutions Ltd have voted overwhelmingly to declassify sacked founder-chairman Gautam Thapar as a promoter and have reappointed Sudhir Mathur, who is leading the rescue of the company, as a director.

At the company’s annual general meeting of shareholders, on October 19, held virtually, 99.99% of the shareholders voted for “re-classification of the existing promoters and promoter group as public”, the firm said in a regulatory filing.

Within days of the unearthing of the fraud involving siphoning off money raised using company assets as collateral, Thapar was removed by the company Board on August 29, 2019.

Thapar was the non-executive chairman of the company at that time.

The AGM resolution said Thapar’s promoter group firms’ shareholding in CG Power was just 0.002% (8,574 shares out of total of 62.67 crore shares).

Also, Thapar along with other former executives have been barred by market regulator SEBI from accessing the securities market, it said.

CG Power Board has agreed to an offer made by Murugappa group firm Tube Investments of India Ltd to invest Rs 700 crore in the company which will give the much-needed working capital to the power equipment maker as well as help restructure unpaid debt with the lenders.

Murugappa group will acquire controlling interest as a result of the investment, it said.

Thapar-led promoter group held 21.54 crore shares, constituting a 34.38% stake in the company, as of April 1, 2018, according to the annual report.