For CG Power, the trouble started long before it reported serious lapses
Shares of CG Power and Industrial Solutions Ltd have tumbled 36% in the last two trading sessions on news of serious accounting lapses at the company. The stock has been languishing at the lower circuit for the past two days because no one knows the extent of the trouble at the company.
It’s important to note that the market had got wind of troubles brewing at CG Power much earlier. The company’s market capitalization has fallen from around ₹6,000 crore in January 2018 to ₹1,156 crore earlier this week, even before it reported the unauthorized transactions by certain employees on Tuesday.
The fall in the stock’s value in the past two trading sessions, however, pales in comparison. CG Power’s market cap has declined by about ₹400 crore since it reported the unauthorized transactions.
