The board of Tube Investments of India Ltd, part of the diversified conglomerate Murugappa Group, approved an additional investment of Rs 100 crore in CG Power and Industrial Solutions.
The additional investment was being proposed to meet the funding requirements of CG Power and was subject to necessary corporate authorisations and statutory approvals, Tube Investments of India said in a BSE filing.
On August 7, Tube Investments of India agreed to invest Rs 700 crore in CG Power and Industrial Solutions Ltd for a 51 per cent stake.
TII would also invest Rs 150 crore in the company over the next 18 months in the form of buying warrants that can be converted into equity shares.
"...we write to inform that the Board of Directors of our company at the meeting held today (September 2), approved additional investments of 6,87,28,522 equity shares of CG Power and Industrial Solutions to be issued at Rs 14.55 per equity share," TII said in the filing.
The company also said that TII entered into an amendment agreement to the Securities Subscription agreement dated August 7 with CG Power to provide for the additional investment.
Tube Investments of India said the acquisition of controlling interest in CG Power was subject to approval of the Competition Commission of India and satisfactory fulfilment of conditions precedents contained in the Securities Subscription Agreement, as amended by the Amendment Agreement, executed between Tube Investments of India and CG Power.
The Rs 36,900 crore Murugappa Group, which has an engineering arm, had made a non-binding offer to invest in CG Power.
Tube Investments of India is a leading manufacturer of a wide range of products for major industries such as automotive, railway, construction, mining and agriculture.
The company's three main verticals are engineering, metal formed products and bicycles.
