YES Bank, India’s fourth largest private sector bank, said it has acquired 12.79% stakes in Electrical Engineering firm CG Power and Industrial Solutions as part of the invocation of a pledge.
It acquired over 8 crore of equity shares of CG Power submitted as collateral for a loan. The shares are valued at Rs 288 crores.
Part of the Avantha Group, CG Power had a consolidated revenue of Rs 6,827 crore in FY 2017-18.
YES Bank acquired shares from Avantha Group concern Oyster Buildwell Private Ltd after it failed to service the loan.
CG Power, formerly known as Crompton Greaves, is one of the largest players in India in the electrical equipment and engineering industry.
Headquartered in Mumbai, it has manufacturing facilities in Goa, Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Canada, Belgium and the United States.
Proceeds from sale of shares will be utilized to reduce loans secured by such shares, said YES Bank.
Established in 2004 by Rana Kapoor and Ashok Kapoor, YES Bank has operations in commercial banking, investment banking, corporate banking, retail banking and financial marketing. It has 1,150 branches and over 1,800 ATMs in India.