‘Corporate feud in CG Power spooks share value’

The corporate battle between CG Power and Industrial Solutions and its ousted chairman Gautam Thapar has led to value destruction for minority shareholders, according to corporate governance advisory firm InGovern. In its recent report, InGovern has questioned the roles of various stakeholders — the board, key management personnel, internal auditors, bankers to the company, lenders to the holding company, statutory auditors, promoters and other group companies.

Since March last year, share price of CG Power has fallen to ₹9 from ₹43

The investigative authorities are looking into allegations surrounding the usage of funds and land assets from the company by promoter-connected entities, borrowings against the assets of the company for the benefit of other group companies, and vendor transactions with promoter-connected entities.