The Board of Directors of Tube Investments of India (TII) has approved an additional investment of up to Rs 100 crore into the Rs 700 crore deal, in the process to acquiring a majority stake in CG Power and Industrial Solutions.

In the bidding process, TII emerged as a successful bidder, and the company’s board had earlier approved an investment of Rs 700 crore from Tube Investments for a stake of 56.61 per cent company’s lender had declared TII’s offer as a successful offer, subject to all conditions mentioned in the letter of intent.

On 7 August, TII and CG Power had entered into a securities subscription agreement for an investment of around Rs 700 crore to acquire a 51% majority stake. The acquisition would be made through a combination of primary subscription of 64.25 crore equity shares for around Rs 550 crore and Rs 150 crore through subscribing 17.52 crore warrants which would be equal to the same number of shares within a period of 18 months from the date of allotment and then, TII will hold 56.61 per cent stake.

Tube Investment India Approves an Additional Investment of Rs 100 Crore had reported a net loss of Rs 283.53 crore on a consolidated basis in the Q4, FY20 results compared to a net loss of Rs 181.29 crore in the same quarter in the FY19. Net sales of the company fell by 69 per cent to Rs 616.25 crore in the Q4, FY20 results against Rs 1988.86 crore in the Q4, FY19.