CG Power hits upper circuit after board sacks chairman Gautam Thapar

NEW DELHI: Shares of CG Power jumped 5 per cent to hit upper circuit limit to Rs 9.95 in Thursday’s trade after the company said that its board sacked Gautam Thapar as its chairman with immediate effect after an investigation that unearthed a multi-crore financial scam in the firm.

"In cognizance of the current situation being faced by the company and the recent developments, the Board of Directors have resolved to remove Gautam Thapar as the chairman with immediate effect," the company said in a regulatory filing.

"This decision has been taken in the interests of the company and its stakeholders in discharge of the fiduciary responsibilities of the Board," it added.


The company had in a regulatory filing on August 20 stated that an investigation instituted by its board had found major governance and financial lapses including some assets being provided as collateral and the money from the loans siphoned off by identified company personnel, both current and past, including certain non-executive directors.

Reports suggested that CG Power plans on selling non-core assets and raising fresh equity to deleverage its operations.

Earlier in the day, the stock opened at Rs 9.95 on BSE against its previous closing of Rs 9.50.