CG Power Shares Locked In 5% Lower Circuit After Yes Bank Sells Part Stake

On Thursday, shares of CG Power and Industrial Solutions Ltd slumped 4.88 percent to Rs 9.75 as Yes Bank Ltd sold 16.65 million shares, constituting 2.66 percent of the paid-up share capital in the company. The lender in a stock exchange filing on Wednesday said that it sold its shares in CG Power having a nominal value of Rs 2 each in multiple tranches till 7 July.

"After the aforesaid disposal of shares, the Bank now holds 6,34,00,000 shares of CG Power, being 10.12% of the paid-up share capital of CG Power," the bank's statement added.

On Wednesday, shares of CG Power fell 5 percent to close at Rs 10.27 on the BSE.

Earlier this week, the company said that its current debt payment default, which also includes interest payment, amounts to Rs 1,023 crore. Of the total default, interest component accounts for Rs 150 crore and Rs 873 crore is principal as of 30 June.

For the March ended quarter, CG Power reported a net loss of Rs 283.53 crore when compared to a net loss of Rs 181.29 crore a year ago. Its net sales fell 69 percent to Rs 616.25 crore in April-June.

On the other hand, Yes Bank gained for the second straight day on Thursday due to its fundraising plans.

Yes Bank surged on filing a red herring prospectus (RHP) with the Registrar of Companies for an FPO (Further Public Offering) up to Rs 15,000 crore, by way of a fresh issue of equity shares, including an employee reservation portion of up to Rs 200 crore.

The State Bank of India, also the largest stakeholder in Yes Bank, said on Wednesday that it will invest up to Rs 1,760 crore in the FPO.