CG Power is undergoing financial stress and the its lenders have initiated the process for resolution of stress in CG Power under the Stressed Asset Directions.

As a first step to the commencement of the bidding process, TII and CG Power entered into a Securities Subscription Agreement today (7 August 2020) for an investment of around Rs.700,00,00,005 in CG Power for acquiring a controlling stake in that company through a combination of (i) investment of around Rs.550,00,00,004 for primary subscription to the equity shares, and (ii) investment of around Rs.150,00,00,001 for primary subscription to warrants (referred as the Securities). The Warrants referred will be convertible into equivalent number of equity shares at the option of TII within 18 months from the allotment. The Securities shall be issued to TII on a preferential issue basis under Regulation 164A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Out of the total investment amount for the Warrants, 25% of the total investment amount will be paid upfront at the time of subscription of the Warrants.

The investment and issue and allotment of Equity Shares and Share Warrants on Preferential basis are subject to TII being declared as successful bidder under the Swiss Challenge Process under Stressed Asset Directions, approval of Competition Commission of India and satisfactory fulfilment of Conditions Precedents contained in the said Securities Subscription Agreement.