Shares of CG Power & Industrial Solutions closed higher today after the company said its board has sacked Gautam Thapar as its chairman with immediate effect after an investigation that unearthed a multi-crore financial scam in the firm.
CG Power share opened 4.7% higher with the opening bell to Rs 9.95 against the last closing price of Rs 9.5. The stock was locked in the upper circuit of 5% throughout the trading session. There are only buyers bidding and no sellers offering on the CG Power stock. CG Power share closed 4.74% higher at Rs 9.95 apiece on BSE.
The stock has risen over 15% in the last 3 trading session but has significantly fallen around 77% year-to-date.
On August 20, the company had stated that an investigation instituted by its board had found major governance and financial lapses including some assets being provided as a collateral and the money from the loans siphoned off by "identified company personnel, both current and past, including certain non-executive directors."
On May 10, the company board had sent CEO and Managing Director K N Neelkant on leave, pending an investigation into some "suspect, unauthorised and undisclosed" transaction, while Thapar continued as the company chairman.
Thapar holds 8,574 shares out of 62.6 crore shares of the company.
"This decision has been taken in the interests of the company and its stakeholders in the discharge of the fiduciary responsibilities of the board," the regulatory filing said.
CG Power had stated that the transactions appear to be undertaken in a "seemingly fraudulent manner" and that it would investigate them further. The company now plans to conduct a detailed forensic investigation to establish the wrongdoing.
Edited by Rupa Burman Roy
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