Tube Investments of India Limited has acquired a controlling interest and holds 50.62% of the issued, subscribed and paid up equity share capital of CG Power and that CG Power has, therefore, become a subsidiary of the company from November 26, 2020.
The company further said that with effect from November 26, 2020, the company, viz. Tube Investments of India Limited, has been classified as the ‘promoter’ of the CG Power and the board of directors of CG Power has been reconstituted pursuant to the terms of the Subscription Agreement.
In terms of the Securities Subscription Agreement dated August 7, 2020, CG Power on November 26, 2020 allotted to the company 64.25cr equity shares of the face value of Rs2 each at a price of Rs8.56 per Equity Share, for an aggregate consideration of Rs550cr.
It also allotted 17.52cr warrants, each carrying a right exercisable by the company as the Warrant holder to subscribe to one Equity Share per Warrant within 18 months from allotment, for a subscription amount of Rs37.50cr, being 25% of the aggregate consideration payable for subscribing to Equity Shares upon exercise of the Warrants.
Tube Investments of India Ltd trade ended at Rs815.05 per piece down by Rs20.55 or 2.46% from its previous closing of Rs835.60 per piece on the BSE.