MD Arun Murugappan handed over the cheque to Stalin

Chennai-based Murugappa Group on Thursday took over scam-hit CG Power and Industrial Solutions NSE -0.82 %, infusing Rs 700 crore into the company and appointing directors on its board. CG Power in a stock exchange filing said the company board at its meeting on Thursday issued 64.25 crore shares of Rs 2 at a price of Rs 8.56 (including premium) per share aggregating to Rs 550 crore to Tube Investments of India Ltd (TII). “Post the allotment of securities, TII has acquired a controlling interest in the company and holds 50.62 per cent of the paid-up equity share capital of the company,” it said. TII paid Rs 5.87 crore towards subscription of equity shares and 25 per cent upfront consideration for warrants. TII will eventually hold a 56.61 per cent stake once all warrants are converted into equity.