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. Meanwhile, shares of Yes Bank, which has a 12.79 percent stake in CG Power as on June 30, 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 unauthorized 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 March 31, 2018, and by Rs 1,479.34 crore and Rs 1,331.47 crore, respectively, as on April 1, 2017, the company said in the regulatory filing to exchanges.
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