Tube Investments of India Ltd. (TII), a Murugappa group firm, has acquired controlling stake in CG Power and Industrial Solutions with allotment of equity shares and warrants.
With the allotment of equity shares, TII holds 50.62% and CG Power has become its subsidiary.
As per the proposal, CG Power has allotted 64.25 crore equity shares of ₹2 each at a price of ₹8.56 (including premium) per share, for an aggregate sum of ₹550 crore, and 17.52 crore warrants amounting to ₹37.50 crore.
TII has decided to raise ₹350 crore by issuing preferential shares on a private placement basis to Azim Premji Trust and SBI Mutual Funds. The Trust will be investing about ₹200 crore and SBI MF the remaining sum. The shares with a face value of ₹1 are being issued at a premium of ₹730.70 per share.
The board of TII on Thursday accorded its approval for issue of TII equity shares on a preferential allotment/private placement basis to entities not belonging to the promoter or promoter group of the company. An EGM is convened on December 21 to get shareholders’ approval.
