Tube Investments of India Ltd. (TII), a Murugappa Group firm, has decided to invest an additional ₹100 crore in CG Power and Industrial Solutions Ltd. to meet the latter’s additional funding requirements.
The fresh infusion is in addition to the investment of ₹700 crore in equity shares and warrants announced on August 7 to bail out the cash-strapped firm, TII said.
TII will subscribe to 6.87 lakh equity shares of CG Power at ₹14.55 per share on a preferential basis.
After the subscription, TII’s stake would rise to 58.58%. TII’s board had approved the proposal.
TII considers that its operational, financial and governance capabilities will help remove the difficulties faced by CG Power. Since both the companies are in the engineering business, the acquisition is expected to provide synergy for both the companies, it said.
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