CG Power and Industrial Solutions shares hit lower circuit limit; stock of Yes Bank tumbles over 4%

Shares of CG Power and Industrial Solutions on Wednesday slumped 20 percent to touch their lowest trading permissible limit for the second consecutive day amid alleged financial irregularities in the company

Press Trust of India August 21, 2019 12:20:08 IST
CG Power and Industrial Solutions shares hit lower circuit limit; stock of Yes Bank tumbles over 4%
  • On the BSE, the shares of CG Power and Industrial Solutions tumbled 20 percent to touch its 52-week low of Rs 11.80

  • Meanwhile, shares of Yes Bank, which has 12.79 percent stake in CG Power as on 30 June, 2019, also fell over 4 percent to Rs 68.10 apiece on the BSE

  • 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

New Delhi: Shares of CG Power and Industrial Solutions on Wednesday slumped 20 percent to touch their lowest trading permissible limit for the second consecutive day amid alleged financial irregularities in the company.

On the BSE, the scrip tumbled 20 percent to touch its 52-week low of Rs 11.80.

On the NSE, the shares plunged 19.93 percent to reach their lower price brand at Rs 11.85.

CG Power and Industrial Solutions shares hit lower circuit limit stock of Yes Bank tumbles over 4

Representational image. Reuters.

Meanwhile, shares of Yes Bank, which has 12.79 percent stake in CG Power as on 30 June, 2019, also fell over 4 percent to Rs 68.10 apiece on the BSE.

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.

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.

Advances to related and unrelated parties of the company and the group may have been potentially understated by Rs 1,990.36 crore and Rs 2,806.63 crore, respectively, as on 31 March, 2018, and by Rs 1,479.34 crore and Rs 1,331.47 crore, respectively, as on 1 April, 2017, the company said in the regulatory filing to exchanges.

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