CG Power shares rise 5% after board appoints new chairman
BusinessToday.In September 26, 2019
Shares of CG Power and Industrial Solutions rose 5% to hit a six-week high of Rs 16.04 on Wednesday after the company said its board has appointed a non-executive independent director Ashish Kumar Guha as its chairman.
"Ashish Kumar Guha, Non-Executive Independent Director of the Company was appointed as the Chairman of the Board of Directors of the Company with effect from September 25, 2019," the company said in a BSE filing after its board meeting.
Following the regulatory statement release, the stock of CG Power formed a gap up chart pattern with the opening bell today, hitting the 5% upper circuit to trade at the intraday high as well as its month's and week's high of Rs 16.04 on the BSE.
On August 26, the market capitalisation of the listed entity stood at Rs 542.14 cr, also the lowest ever recorded for the month, data from Ace Equity show. Since then, the company has bagged 85% rise or Rs 458.86 crore addition in its market capitalisation. Today, its market capitalisation stood at Rs 1,001 crore, as of 1330 IST. In terms of share value, the share price has risen over 80% over in more than a month.
The stock has outperformed the 'Heavy Electrical Equipment' sector by 1.31% and has also gained 15% value in the last 4 trading sessions. CG Power stock currently trades higher than the 5 and 20-day moving averages but lower than 50, 100 and 200-day moving averages.
Earlier, the company had sacked its promoter Gautam Thapar from the post of Chairman after an investigation that unearthed a multi-crore financial scam in the firm.
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 collateral and the money from the loans siphoned off by "identified company personnel, both current and past, including certain non-executive directors".
In another regulatory statement, the company clarified on further delay in finalisation of the financial statements for the Q1 of the current fiscal.
The company highlighted various factors that have led to delay such as, "The Board of Directors noted that there was a delay in finalisation of Financial Results for the 4th quarter and year ended March 31, 2019, which was approved by the Board of Directors on August 30, 2019. Consequently, there was a delay in finalisation of financial results for 1 st quarter ended June 30, 2019, as the opening balances for April 1, 2019, were not available. The Board also took note of the ongoing forensic investigation pursuant to the disclosures made by the Company dated August 19, 2019."
Its board plans to hold a meeting by November 11 for consideration of financial results for Q1 and Q2 and assured that going forward, adequate steps shall be taken to meet the compliances at the earliest possible time.
Volume-wise, shares amounting to 4.6 lakh and 21 lakh changed hands on BSE and NSE, both above 5,10 and 30-day average volume traded. As of 1330 IST, Shares of CG Power and Industrial Solutions trade 2.16% higher at Rs 15.61 on the BSE.
By Rupa Burman Roy