CG Power jumps 5% as CEO resigns from all subsidiary positions

NEW DELHI: Shares of fraud-hit CG Power climbed 5 per cent in Wednesday’s trade after Chief Executive Officer KN Neelkant resigned from all the positions he held in the company subsidiaries amid mounting pressure.

Neelkant confirmed resigning from the subsidiaries but said he believed that investors and lenders would not want him to step down from CG Power in the "best interest" of the company.

Following the report, the stock climbed 5 per cent to hit a high of Rs 13.92 on BSE.


Late last month, the board of CG Power & Industrial Solutions removed its founder Gautam Thapar as chairman following an investigation unearthing a multi-crore financial fraud in the company.

Sources told PTI that investors and lenders had wanted clean-up of the company and so forced Thapar out. They want completely new management to run CG Power, for which they believe Neelkant needed to go, sources said.

Neelkant had abstained from voting on the resolution to remove Thapar as the company's chairman. The resolution was carried by a majority vote of the members of the board, the company had said on August 29.

After his removal, Thapar had stated that "no promoter or promoter entity has derived any undue benefit. There is simply no fraud". He reportedly has sent a legal notice to the company board.