Avantha Group company CG Power and Industrial Solutions Ltd is considering to offload its non-core assets and an equity fund raise to bridge the cash flow gaps and meet working capital requirements.
The potential divestment of the non-core assets include the sale of Kanjurmarg land and CG House, CG Power said in a stock market disclosure.
CG Power came under the radar last week after the firm said it has detected unauthorised transactions and financial irregularities by some employees. The disclosure had led to a selloff in the company's shares, which fell by the maximum permissible limit of 20% to Rs 14.75 apiece on the BSE.
Shares of GG Power on Wednesday were trading at Rs 9.5 apiece, up 4.97%.
The company said it will facilitate early completion of phase II forensic investigation to establish accountability and the end use of funds diverted, according to a stock exchange disclosure.
CG Power is a part of Avantha Group, an industrial firm led by Gautam Thapar. Established in 1937, CG Power's portfolio includes transformers, switchgear, circuit breakers, network protection and control gear, project engineering, drives, power automation products and turnkey solutions.
The company ventured outside India through both organic and inorganic routes since 2005 and now has manufacturing bases in Belgium, Hungary, Indonesia, Ireland, France, UK and US. It has more than twenty manufacturing locations in India.
CG Power is also considering expansion to other Southeast Asian markets such as Vietnam and Philippines besides reviewing other international businesses.
The company's total income fell to Rs 8,047 crore in the fiscal year ended 31 March 2019 from Rs 8,133 crore in the previous fiscal year. Its net loss narrowed to Rs 487 crore during the period from Rs 729 crore in the last financial year.
