Stocks

CG Power shares tumble 10 per cent

PTI New Delhi | Updated on August 22, 2019 Published on August 22, 2019

Shares of CG Power and Industrial Solutions continued to remain locked in the lower circuit for third consecutive day, tumbling nearly 10 per cent on Thursday amid concerns over alleged financial irregularities in the company.

The scrip tanked 9.75 per cent to ₹10.65 on the BSE. On the NSE, it cracked 9.70 per cent to touch a one-year low of ₹10.70. In the last three sessions, the shares of the company have fallen 42.11 per cent on the BSE.

Shares of Yes Bank, which holds 12.79 per cent stake in CG Power as on June 30, 2019 quarter, also tumbled 8.10 per cent to Rs 60.10 - its 52-week low.

Related news: Yes Bank may fall into ₹52-47 range

Gautam Thapar-promoted CG Power and Industrial Solutions on Tuesday said an investigation by its board found major governance and financial lapses, including advances to related and unrelated parties as well as liabilities of the company and the group potentially being understated by hundreds of crores of rupees.

Also read: CG Power reports massive fraud

After 13 hours of discussions lasting till 4 am, the board came to the conclusion that there were some unauthorised transactions carried out by ‘certain employees’, which led to a potential understatement of not only the company’s liabilities but also advances to related and unrelated parties of the company and the group.

Published on August 22, 2019
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