Lenders of CG Power negotiate with Murugappa Group to further raise the bid amount

Lenders to CG Power are negotiating with the Chennai-based Murugappa Group to up the bid to about Rs 1,000 crore, three people aware of the development told ET. Murugappa had recently increased the bid amount to Rs 850 crore from Rs 750 crore it had offered earlier.

If concluded, the deal will likely give Murugappa at least 70% of the debt-laden company.

Separately, the Welspun Group has also initiated preliminary talks with lenders to buy CG Power, one of the sources cited above said.

“Other buyers have evinced interest but lenders are considering Murugappa Group as they have already submitted a non-binding offer.