CG Power and Industrial Solutions Ltd updates on settlement with SCB

As part of the resolution plan for the Company, the Board of Directors ("Board") of CG Power and Industrial Solutions Limited (the "Company"), based on the confirmation received from its authorized dealer bank, at their meeting held today i.e. Tuesday, May 11, 2021, have considered and approved the issue and allotment of 1,38,45,000 (One Crore Thirty Eight Lakh Forty Five Thousand) equity shares of the Company of face value of INR 2/- (Indian Rupees Two only) each ("Equity Shares") on preferential basis at a price of INR 73.10 (Indian Rupees Seventy Three and paise ten only) including premium of INR 71.10 (Indian Rupees Seventy One and paise ten only) per Equity Share aggregating to INR 1,01,20,69,500/- (Indian Rupees One Hundred and One Crore Twenty Lakhs Sixty Nine Thousand Five Hundred Only), for consideration other than cash, i.e., for settlement of liability of the Company under the guarantee issued by it pursuant to the terms set out under the Guarantee Settlement Agreement, to Standard Chartered Bank (Singapore) Limited ("SCB"), a Qualified Institutional Buyer, subject to the approval of the shareholders of the Company ("Preferential Allotment").

The Company had entered into a guarantee agreement dated January 8, 2018 ("Guarantee Agreement") under which it had guaranteed the payment/repayment obligations of CG International Holding Singapore Pte. Limited ("CG Singapore"), a wholly owned subsidiary of the Company, under the credit facilities aggregating to EUR 44 Million availed by CG Singapore from SCB. The outstanding obligations of the Company towards SCB under the Guarantee Agreement and other guarantee documents were agreed to be settled pursuant to the guarantee settlement agreement dated November 13, 2020 (the "Guarantee Settlement Agreement").

As per the terms of settlement agreed under the Guarantee Settlement Agreement, for settling all obligations of the Company under the Guarantee Documents (as defined under the Guarantee Settlement Agreement), the Company is required to:

- pay EUR 3,664,682 (Euros Three Million Six Hundred Sixty Four Thousand Six Hundred Eighty Two) to SCB; and

- issue and allot 1,38,45,000 (One Crore Thirty Eight Lakh Forty Five Thousand) Equity Shares of the Company to SCB, i.e. Standard Chartered Bank (Singapore) Limited, qualified institutional buyer, in accordance with the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("SEBI ICDR Regulations") and other applicable provisions of Foreign Exchange Management Act, 1999 and rules and regulations framed thereunder and any other rules, regulations or guidelines, if any, prescribed by any other regulatory authorities.

Shares of CG Power and Industrial Solutions Ltd was last trading in BSE at Rs.85.45 as compared to the previous close of Rs. 84.85. The total number of shares traded during the day was 487616 in over 4790 trades.

The stock hit an intraday high of Rs. 87.5 and intraday low of 80.65. The net turnover during the day was Rs. 41387217.

Source : Equity Bulls

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