Private sector lender Yes Bank Ltd. has exited CG Power & Industrial Solutions Ltd. by selling its entire shareholding in the company.
The lender has sold 6,34,00,000 equity shares, or 10.12% stake, of CG Power in various tranches, last being on Aug. 18, 2020, according to a regulatory filing on Wednesday. "The bank now holds nil shares of CG Power," the filing read. Yes Bank had on July 7 sold 1,66,50,000 shares, or 2.66%, of CG Power.
It was in May 2019 that Yes Bank had acquired 8,00,50,000 equity shares, or 12.79% stake, in CG Power by invoking pledged shares.
“Shares have been acquired pursuant to invocation of pledge of shares of CG Power subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Oyster Buildwell Pvt. Ltd. (borrower), which is a group company of Avantha Group,” the lender had said in a regulatory filing then. The proceeds from the share sale will be utilised to reduce the bad loans secured by such shares, it had said.
On Thursday, Yes Bank shares fell 0.13% to Rs 15.76 apiece on the BSE while those of CG Power rose 4.94% to Rs 16.15. The benchmark Sensex ended the day 1.02% lower at 38,220.39 points.
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