HDFC Mutual Funds Approximately Hold 9% Fraud Hit CG Power And Industrial Solution
Latest News: CG Power and Industrial Solution Ltd’s board disclose the reason for stock plummets on Tuesday. The board said it happened due to an unhealthy transaction, depending on this issue company facing difficulty to understand the company’s liabilities and advances. Literally, the CG Power shares crashed by 20%.
Thapar groups Firms have ceded control of CG Power to lenders and also the inability to service debt led to a dilution of Thapar Group’s control. Avantha had no shares in the company as on June 30, 2019.
Coming to the private sector lender YES Bank hold a 12.27% stake in CG power, other shareholders include HDFC Mutual Fund, Aditya Birla Sunlife, Frankline Templeton LIC. In all, five of the 44 mutual fund participants have exposure to the company. Of these, HDFC Mutual Fund had 9.17 percent invested in the company as on June 30, 2019, followed by Aditya Birla Sun Life, which had deployed 8.92 percent.
IDFC Mutual, Reliance Mutual Fund and Franklin Templeton Mutual Fund are the other fund houses that had exposure in the range of 1-3 percent as of June 30, 2019, in CG Group and Industrial Solutions.
As per media reports, the Ministry of Corporate Affairs (MCA) has ordered an inspection of the company’s affairs in the wake of the financial mess at CG Power.
About the Company:
CG Power is an Indian multinational company engaged in the design, manufacturing, and marketing of products related to power generation, transmission, and distribution based in Mumbai. it is part of Avantha Group, founded by Gautam Thapar. The company contains two sectors Power System and Industrial System.