L’Affaire CG Power a Pain Point For YES Bank and Mutual Funds
NEW DELHI: According to Market Reports, shares of CG Power and Industrial solution disclosing the manipulation of accounts and likely diversion of thousands of crores of rupees.
Yes, Bank NSE-3.79% took control of a 12.8 per in CG Power in May after invoking shares pledged by founder Avantha Holdings Ltd. The private crashed 7.11% to ₹71.25 on Tuesday at BSE following the disclosure by CG Power, coming off an intra-day low of Rs 70.55. The troubled lender’s market value has eroded by over 80 percent in just one year due to chunky exposures in troubled companies including Anil Ambani-led Reliance Group, Zee Group, DHFL and Café Day Enterprises.
Some of the mutual funds also hold substantial stakes in Gautam Thapar’s CG Power. Aditya Birla SunLife AMC 8.94 percent, HDFC Asset Management Company holds 9.18 percent, Franklin Templeton AMC 3.19 percent, Reliance Capital Trustee 2.03 percent and IDFC Sterling Value Fund 1.53 percent at the end of June. LIC holds 2.25 percent in the company while private equity giant KKR holds 10.8 percent.